PSE index back above 6,400 on bargain hunting

Philippine stocks rebounded on Wednesday to snap a two-day losing streak, with the index returning above the 6,400 line, as market participants bought bargains.

The bellwether Philippine Stock Exchange index (PSEi) rose by 0.64% or 41.18 points to 6,425.80, while the broader all shares index improved by 0.47% or 17.56 points to 3,753.10.

“The local market bounced back as investors hunted for bargains after two straight days of decline,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “The positive spillovers from Wall Street’s overnight performance also helped in Wednesday’s session.”

“Philippine shares tracked US’ performance, gaining 0.64%, as investors’ risk appetite recovered on the tariff pause. Wall Street was in the green following news on the postponement of 50% tariff on the EU (European Union),” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Wall Street surged on Tuesday as investor risk appetite was buoyed by US President Donald J. Trump’s latest tariff respite and an unexpected jump in consumer confidence, Reuters reported.

The S&P 500 is now within 3.6% of its record closing high reached on Feb. 19, having plunged as much as 18.9% below that level in the wake of Mr. Trump’s erratic tariff announcements, which have whipsawed markets for much of the President’s second term.

In the latest move, the President backed down from his 50% tariff threat against the European Union, delaying its implementation until July 9 to allow for negotiations between the White House and the 27-nation bloc. The move prompted Brussels to prepare for trade negotiations.

The Dow Jones Industrial Average rose 740.58 points or 1.78% to 42,343.65; the S&P 500 gained 118.72 points or 2.05% to 5,921.54; and the Nasdaq Composite gained 461.96 points or 2.47% to 19,199.16.

Back home, all sectoral indices closed in the green on Wednesday. Financials rose by 1.46% or 35.03 points to 2,427.87; services went up by 0.76% or 16.28 points to 2,143.68; industrials climbed by 0.28% or 25.14 points to 8,890.88; holding firms increased by 0.26% or 14.64 points to 5,461.9; property added 0.25% or 5.71 points to end at 2,255.06; and mining and oil inched up by 0.02% or 1.94 points to 9,790.77.

“Alliance Global Group, Inc. was the day’s index leader, climbing 3.6% to PHP 8.05. Century Food Pacific, Inc. was the main index laggard, falling 3.78% to PHP 39.45,” Mr. Tantiangco said.

Value turnover increased to PHP 6.3 billion on Wedneday with 601.1 million shares traded from the PHP 5.13 billion with 639.26 million issues exchanged on Tuesday.

Advancers bested decliners, 118 versus 80, while 48 names were unchanged.

Net foreign buying stood at PHP 687.36 million on Wednesday, a reversal of the PHP 55.76 million in net foreign selling on Tuesday. — Revin Mikhael D. Ochave with Reuters