PSE index extends gains amid bargain hunting

THE MARKET rallied for a second consecutive session yesterday as investors continued to pick up bargains following last week’s sell-off.

The Philippine Stock Exchange index (PSEi) gained 36.67 points or 0.54% to end Thursday’s trading at 6,873.31, still down from its end2015 close of 6,952.08.

The broader all-shares likewise advanced by 21.54 points or 0.52% to 4,170.64.

“The market was up still on bargain hunting and rebalancing of portfolio, so the rise [ yesterday] was just technical after we were hardly hit last week,” Luis A. Limlingan, business development head at Regina Capital Development Corp., said via phone yesterday.

“Investors are also trying to interpret the latest minutes of the FOMC (Federal Open Market Committee) meeting on the magnitude of the rate hike which is widely-anticipated next month,” he added.

Summit Securities, Inc. President Harry G. Liu for his part said local stocks ended in the green as a “technical reaction as the market was oversold.”

“We’re still on the consolidation mode due to the downside that happened. Foreign selling continued due to lack of foreign participation and peso weakness and also due to Fed rate hike concerns,” Mr. Liu added.

All counters saw gains yesterday except services which declined by 11.25 points or 0.86% to close at 1,300.03 yesterday. Mining and oil stocks led the gains with 271.06 points or 2.23% to 12,415.40. Holding firms meanwhile, climbed by 70.84 points or 1.02% to 7,038.83; property by 18.71 points or 0.63% to 3,004.49; industrial by 55.34 points or 0.50% to 11,054.13; and financials by 3.17 points or 0.19% to 1,672.57.

The market witnessed 113 stocks advance versus the 65 that declined and 47 that remained unchanged. Value turnover however fell to P6.17 billion, after 844.64 million issues changed hands, from the P6.67 billion recorded on Wednesday.

Foreign investors continued to dump shares, with net selling reaching P948.30 million, although lesser than the P1.07 billion seen the day prior.

Diversified Securities, Inc. equities trader Aniceto K. Pangan shared the same sentiment that the market rebound was due to bargain-hunting.

“We had a market that’s oversold two days ago, I believe foreign investors are on net selling mode because of the uncertainty brought up by the President-elect in the United States which has a protectionist stand.”

“Most uncertainties are sipping through the market, particularly the incoming rate hike in December which makes the dollar stronger,” Mr. Liu said over phone.

For today, analysts said the selloff may persist as domestic and global worries nag. Mr. Limlingan said the PSEi will likely move within the 6,650-7,000 range, while Mr. Liu pegged the support level at 6,800 and the resistance at 6,970.