Philippine stocks saw a strong rebound Tuesday, driven by improved market sentiment after reports that the country was placed on “index watch-positive” for possible inclusion in J.P. Morgan’s emerging market government bond index.
The Philippine Stock Exchange index (PSEi) gained 91.31 points, or 1.51 percent, to close at 6,148.74. The broader all-shares index also rose, adding 36.63 points, or 0.97 percent, to 3,706.20.
The Philippine peso also strengthened to 56.91 against the U.S. dollar, up from 57.181 on Monday.
According to Rizal Commercial Banking Corp. chief economist Michael Ricafort, the potential inclusion in the J.P. Morgan Government Bond Index – Emerging Markets (GBI-EM) could attract more foreign investments, increase liquidity, and lower the country’s borrowing costs.
Analysts said the market was also boosted by bargain hunting as several blue-chip stocks have reached oversold levels. First Metro Securities noted that investors were snapping up undervalued stocks ahead of the U.S. Federal Reserve’s policy meeting.
Buying was broad-based, with the financials sector leading the gains with a 3.7 percent increase, followed by mining and oil, which rose 3.22 percent. However, the property sector ended in negative territory, down 0.44 percent.
Value turnover reached P5.9 billion. Advancers outnumbered decliners 101 to 93, while 59 stocks remained unchanged. Foreign flows, however, remained negative, with outflows totaling P19.30 million.
DigiPlus Interactive Corp. was the top index gainer, surging 25.14 percent to P25.13 after the company announced it will begin operations in Brazil next week. Meanwhile, LT Group Inc. shares fell 1.76 percent to P14.50.
