PHL stocks recover as investors pick up bargains

PHILIPPINE SHARES rebounded on Wednesday as investors picked up bargains following the market’s decline, with sentiment also improving amid strong corporate results.

The Philippine Stock Exchange index (PSEi) rose by 0.55% or 40.26 points to end at 7,280.24 on Wednesday, while the broader all shares index went up by 0.48% or 19.27 points to close at 3,996.58.

“Late day buying sent the local market higher this Wednesday. Investors hunted for bargains with robust third-quarter and nine-month corporate results giving sentiment a boost,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“Trading was tepid, however, as investors were still in a cautious mode amid lingering downside risks including the peso’s weakness and uncertainties over the US’ upcoming elections,” he added.

Value turnover declined to P5.5 billion on Wednesday with 742.78 million shares changing hands from the P6.17 billion with 565.64 million issues traded on Tuesday.

“Philippine shares managed to close in the green with some bargain hunting at closing despite Wall Street ending mixed as investors braced for key corporate earnings releases,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Overall, investor sentiment remained cautious amid uncertainties tied to the upcoming US elections,” Mr. Limlingan said.

The Nasdaq scored a record closing high and the S&P 500 rose on Tuesday, while the Dow fell as investors digested a host of corporate earnings and awaited Google-parent Alphabet’s results that came after the market close, Reuters reported.

The S&P 500 climbed by 0.16% or 9.40 points to 5,832.92; and the Nasdaq Composite rose by 0.78% or 145.56 points to 18,712.75. Meanwhile, the Dow Jones Industrial Average Index fell by 0.36% or 154.52 points to 42,233.05.

Kamala Harris’ lead over Donald Trump dwindled in the final stretch of the US presidential contest, with the Democrat ahead by a single percentage point over the Republican, 44% to 43%, according to a Reuters/Ipsos poll published on Tuesday.

The three-day poll, completed on Sunday, showed the race effectively tied ahead of the Nov. 5 election. The poll had a margin of error of about three percentage points in either direction.

At home, the majority of sectoral indices went up on Wednesday. Financials rose by 1.08% or 25.78 points to 2,396.74; industrials climbed by 0.79% or 78 points to 9,930.87; services increased by 0.63% or 13.96 points to 2,225.78; and mining and oil went up by 0.21% or 18.28 points to 8,616.64.

Meanwhile, holding firms dropped by 0.09% or 6 points to 6,127.13; and property inched down by 0.08 point to 2,791.76.

Decliners beat advancers, 99 versus 88, while 58 names were unchanged.

Net foreign selling went down to P600.04 million on Wednesday from P933.59 million on Tuesday. — R.M.D. Ochave with Reuters