Last-minute bargain hunting lifts stocks

Locals stocks opened the week in positive territory as bargain hunters came into play at the last minute.

The Philippine Stock Exchange index (PSEi) closed 26.82 points or 0.42 percent higher at 6,388.64 yesterday.

Most of the sectors finished in the green except for mining, oil and holding firms.

Total value turnover remained thin at P3.7 billion. Market breadth was negative, 101 to 82 while 45 issues were unchanged.

Claire Alviar, research analyst at PhilStocks Financial, said last-minute bargain hunting propped up the market.

Investors likewise welcomed the big-time oil price rollback today.

“The market traded mostly in the red territory amid a lack of positive catalysts while waiting for the inflation rate in the US. It has been monitored by the investors as it determines whether the Federal Reserve will be more aggressive to tame inflation or will continue the current stance. Once the US dollar becomes stronger due to the decision of the Fed, this will drag the peso’s value which will have an inflationary risk at home. This is why investors are closely monitoring the inflation rate in the US,” Alviar said.

Andrew Tan-led conglomerate Alliance Global Group Inc. led the index gainers, rising by 4.06 percent while Ty-led GT Capital Holdings Inc. fell 2.96 percent.

Meanwhile, mass housing developer 8990 Holdings Inc. announced that it was withdrawing its planned follow-on offer amounting to P27 billion amid the prevailing market uncertainty.

Asian shares retreated yesterday except in Japan, where the benchmark Nikkei 225 index rallied after a landslide parliamentary election victory by the ruling Liberal Democratic Party.

Concerns about global inflation and interruptions to economic activity brought on by COVID-19 are adversely affecting investor sentiment in many parts of the region.

And the tide may be shifting as more and more market players focus on the economic outlook, Stephen Innes of SPI Asset Management said in a commentary.