PSEi climbs above 6,100 on bargain hunting

MANILA, Philippines – Local stocks extended their gains on Friday as bargain hunting and improving macroeconomic sentiment kept investors in buying mode.

The benchmark Philippine Stock Exchange index (PSEi) climbed 1.02 percent, or 62.31 points, to 6,188.03, while the broader market also advanced as easing inflation expectations and the Philippines’ new upper-middle-income status lifted sentiment.

READ: PH attains ‘upper middle income’ rank – World Bank

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According to Philstocks Financial Inc., investors continued accumulating beaten-down stocks amid improving local and global economic conditions.

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“Investors continued to add positions as market conditions appeared less volatile. Macroeconomic developments from the previous day also continued to influence investor reaction and positioning,” said Luis Limlingan, head of sales at Regina Capital Development Corp.

Lower global oil prices also buoyed sentiment as they could ease inflationary pressures and improve the outlook for consumer spending and corporate earnings.

READ: PH’s upper-middle-income status: Milestone or mirage?

Muted trading

Despite the rally, trading remained subdued.

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Net value turnover reached just P3.94 billion, suggesting many investors stayed on the sidelines. Still, foreign investors provided support, ending the session as net buyers with P139.32 million in inflows.

Most sectoral indices finished higher, with only the industrial index slipping 0.05 percent. Mining and oil stocks led the advance, jumping 4.38 percent.

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Among index members, Ayala Corp. posted the biggest gain, surging 6.84 percent to P480.80 per share, while Emperador Inc. was the biggest decliner, falling 2.04 percent to P15.38.

Analysts also cited the World Bank’s upgrade of the Philippines to upper-middle-income status as a positive catalyst, saying it could boost the country’s appeal to foreign investors and strengthen long-term growth prospects. /pai INQ

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