Stocks extend climb as bargain hunting continues

PHILIPPINE STOCKS were up for a second straight day on Wednesday on buying momentum as investors took advantage of lower valuations following the market’s sharp drop, with improved sentiment on Wall Street also providing a boost.

The Philippine Stock Exchange index (PSEi) increased by 0.51% or 31.67 points to close at 6,158.33, while the broader all shares index went up by 0.59% or 20.42 points to end at 3,428.03.

“The PSEi ended higher as the market extended its recovery, with investors taking advantage of bargain prices following recent declines, while sentiment slightly improved after a mixed finish on Wall Street,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “Despite the gains, buying remained selective and cautious as lingering global uncertainties continued to keep overall market sentiment guarded.”

“The local bourse mirrored positive cues from ASEAN (Association of Southeast Asian Nations) peers as investors took advantage of attractive valuations of select issues following the recent market sell-off triggered by the ongoing Iran conflict in the Middle East,” AP Securities, Inc. said in a market note.

The PSEi has fallen from its recent highs as the war in the Middle East entered its second week, with oil supply concerns threatening inflation expectations.

Shares steadied on Wednesday following a retreat in oil prices, but contradictory signals from the US-Israeli war on Iran kept investors anxious over the risks to inflation and global growth, Reuters reported.

Brent crude futures swung between gains and losses in volatile trade, falling 0.4% to $87.45 per barrel, while US crude was up 0.3% at $83.67 a barrel.

Still, regional stocks found some reprieve, with MSCI’s broadest index of Asia-Pacific shares outside Japan up 1.4%, while the Nikkei rose 1.7% and South Korea’s Kospi advanced 1.75%.

US stock futures also pushed higher after a mixed cash session overnight, with Nasdaq futures and S&P 500 futures adding about 0.2% each.

Investors remain on edge as the Middle East conflict threatens to freeze global energy trade and ignite a price shock — a risk that world leaders are scrambling to address.

Four of six sectoral indices closed higher on Wednesday. Mining and oil jumped by 4.66% or 834.12 points to 18,719.51; services increased by 2.36% or 65.75 points to 2,845.23; industrials went up by 1.27% or 112.30 points to 8,904.11; and property climbed by 0.23% or 4.81 points to 2,044.62. Meanwhile, holding firms went down by 0.79% or 37.24 points to 4,670.21, and financials decreased by 0.42% or 8.40 points to 1,956.18.

Advancers outnumbered decliners, 131 to 66, while 57 names closed unchanged.

Value turnover rose to P7.95 billion on Wednesday with 1.37 billion shares traded from the P7.49 billion with 1.4 billion issues that changed hands on Tuesday.

Net foreign selling went down to P219.41 million from P498.05 million in the previous session. — Alexandria Grace C. Magno with Reuters