PSEi climbs above 6,200 on bargain hunting

MANILA, Philippines – Local stocks opened the trading week on a positive note, stretching gains for a fourth straight session as investors continued to hunt for bargains amid easing concerns over inflation.

The benchmark Philippine Stock Exchange Index (PSEi) climbed 0.58 percent, or 35.96 points, to close at 6,223.99 on Monday.

READ: Poll: Inflation may have eased to 6.7% in June

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Philstocks Financial Inc. said sentiment was buoyed by optimism over the country’s inflation outlook following the recent decline in global oil prices, which could ease pressure on consumer prices in the coming months.

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Despite the advance, trading activity remained subdued as many investors stayed on the sidelines amid lingering uncertainties.

Market optimism

Luis Limlingan, head of sales at Regina Capital Development Corp., said the local bourse closed higher, back to the 6,200 level, backed by continued buying interest amid positive market sentiment.

“Investors took cues from reports suggesting a potential easing in June inflation. This encouraged selective accumulation and a generally risk-on tone in the market,” Limlingan said.

READ: BSP: Inflation likely eased in June to 6-7%

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Net value turnover stood at P4.99 billion, while foreign investors remained net sellers with outflows amounting to P491.60 million.

Sectoral performance was largely positive, with only the services index ending in the red after declining 1.72 percent.

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Banks led the market’s advance, rising 1.85 percent, while the remaining sectoral gauges also finished higher.

Among index members, ACEN Corp. emerged as the today’s top performer after climbing 3.55 percent to P3.21 per share.

Meanwhile, Puregold Price Club Inc. was the day’s biggest laggard, dropping 2.78 percent to close at P40.20 apiece.

The latest gain pushed the benchmark further above the 6,200 level, extending its recovery from the 6,000 support area that analysts have been closely watching in recent weeks.

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Analysts said strong sentiment may keep the rally going, although investors stayed careful ahead of this week’s inflation report and interest rate cues. /pai INQ