Bargain hunting and foreign buying helped the country’s stock barometer rebound Tuesday after it dropped to a three-year low the previous day.
The 30-company Philippine Stock Exchange index (PSEi) advanced 38.98 points, or 0.67 percent, to close at 5,867.04. The broader all shares index climbed 9.98 points, or 0.28 percent, to 3,558.88.
The peso strengthened to 58.515 on Tuesday from 58.79 on Monday.
“The benchmark stock index rebounded modestly on the back of bargain hunting and net foreign buying. Monday’s plunge brought many blue chips to compelling valuations, making them attractive to both opportunistic traders and long-term investors,” said Juan Paolo Colet, managing director at China Bank Corp.
Despite the modest rebound, Colet noted that the market’s direction remains uncertain as political and economic issues could still weigh on sentiment.
Analysts also said investors continue to await the release of third-quarter gross domestic product (GDP) and October inflation data. Results of these reports could significantly affect the market’s direction.
In the near term, immediate support remains at 5,800 and resistance at 6,000.
Sectors ended mixed. Financials, property, and services closed in positive territory, increasing by 2.09 percent, 1.94 percent, and 0.12 percent, respectively.
Conversely, industrial, mining and oil, and holding firms ended in the red, declining by 1.24 percent, 1.20 percent, and 0.07 percent, respectively.
Value turnover reached P5.36 billion. Foreign investors were net buyers, snapping up bargains that resulted in a net foreign buying total of P339.78 million.
Market breadth was positive, with 105 stocks closing higher while 83 stocks ended lower.
DigiPlus Interactive Corp. was the day’s top gainer, increasing 10.5 percent to P25.20. Conversely, the share price of International Container Terminal Services Inc. slipped 0.57 percent to P526.
