Stocks up on bargain hunting, window dressing

SHARES JUMPED on Wednesday as investors continued to hunt for bargains and fund managers started window dressing their portfolios.

The bellwether Philippine Stock Exchange index ( PSEi) surged 2.41% or 169.22 points to close at 7,176.43, managing to close at its high for the day.

The all-shares index likewise rose 1.62% or 69.99 points to 4,379.30.

“We are seeing a continuation of bargain hunting of selected oversold stocks. However, it’s just local investors that pushed the index higher. Hopefully we can see this trend until the end of the second quarter,” I. B. Gimenez Securities, Inc. Research Head Joylin F. Telagen said in a text message yesterday.

Regina Capital Development Corp. Managing Director Luis A. Limlingan, meanwhile, attributed the uptick to window dressing ahead of the end of the first half of 2018.

“Window dressing began a few days before the end of the semester getting a push from US stocks eking out small gains on Tuesday with energy shares rebounding from steep losses in the previous session as the US president pressured allies to end oil imports from Iran,” Mr. Limlingan said in a separate mobile phone message.

The US State department on Tuesday announced that companies buying crude oil from Iran must completely cut off ties with the Middle East country by November or they will face sanctions. Last May, US President Donald J. Trump also made the decision to withdraw the country from nuclear deals with Iran.

Oil prices spiked following the announcement. Consequently, the Dow Jones Industrial Average picked up 0.12% or 30.31 points to 24,283.11, while the S&P 500 index increased 0.22% or 5.99 points to 2,723.06. The Nasdaq Composite index rose 0.39% or 29.62 points to 7,561.63.

The PSEi, however, managed to defy the performance of regional markets, which moved lower due to concerns on the trade war between the US and China. Uncertainties on the trade policy between the two countries continued to drag on the sentiments of Asian markets.

Locally, all sectoral indices ended in positive territory, led by property which soared 3.73% or 127.13 points to 3,533.88. Holding firms followed with a 3.04% increase or 209.52 to 7,082.59.

Financials likewise advanced 1.17% or 20.53 points to 1,771.20; mining and oil firmed up 0.68% or 65.12 points to 9,621.69; industrials gained 0.41% or 43.08 points to 10,395.36; while services went up 0.39% or 5.47 points to 1,377.10.

Turnover was valued at P6.50 billion after some 675.53 million issues switched hands, higher than the P5.92 billion recorded in the previous session.

Advancers outpaced decliners, 102 to 95, while 43 issues were unchanged.

Foreign investors turned net sellers once more, with net outflows recorded at P235.14 million, a reversal from Tuesday’s net purchases of P57.67 million. •