Bargain hunting helps market snap losing streak

Manila, Philippines — The local stock market emerged from a five-day decline as bargain-hunting investors capitalized on cheaper stock valuations ahead of the country's inflation announcement on September 1st. The Philippine Stock Exchange index (PSEi) surged by 2.03 percent, or 114.18 points, to close at 5,743.21 points. The broader All Shares index added 1.46 percent, climbing to 3,198.26.

Luis Limlingan explained that the PSEi increased as buying pressure grew, especially among major index components, after five days of losses. He noted that investors seized the opportunity presented by the lower stock prices following the recent sell-off.

Market sentiment improved as investors likely positioned themselves for the upcoming inflation data release. Additionally, positive signals from Wall Street's closing performance last week, marked by a tempered hawkish outlook from the Federal Reserve and weaker-than-expected jobs report, bolstered the session. The services index led the gains, rising by 4 percent, followed by the property sector, which increased by 1.75 percent.

Although other sectors also showed gains, financials were the only ones to decline, dropping by 0.07 percent. Trading volume was relatively low, with total turnover valued at P3.74 billion. Foreign investors were net buyers, with inflows totaling P134.2 million.

Out of the 180 stocks traded, 95 closed lower, while 85 were up, and 77 remained unchanged. ICTSI was the most actively traded stock, surging by 5.23 percent to P905 per share. BDO Unibank fell by 0.09 percent to P110.50, while Ayala Corp. advanced by 1.94 percent to P525.