Shares go up on bargain hunting, lower cases
PHILIPPINE SHARES snapped their three-day decline on Tuesday on bargain hunting and as market sentiment got a boost from the improving pandemic situation in Metro Manila.
The Philippine Stock Exchange index (PSEi) went up by 51.31 points or 0.72% to close at 7,106.01 on Tuesday, while the broader all shares index gained 15.25 points or 0.34% to 4,402.04.
“Investors took opportunities out of its preceding three-day decline,” Japhet Louis O. Tantiangco, senior research and engagement supervisor at Philstocks Financial, Inc., said in a Viber message, adding that “positive cues from Wall Street’s record high performance also gave the market a boost.”
Back home, the country’s improved coronavirus disease 2019 (COVID-19) situation in the National Capital Region (NCR) also gave market sentiment a boost.
“The continuous improvement in our COVID-19 situation helped spur optimism since it raises the chances of social restrictions being eased in the government’s next deciding period,” Mr. Tantiangco said.
“Investors continued to count on lower restrictions by the middle of the month after OCTA Research expressed its support for the further easing in NCR amid low risk of coronavirus resurgence,” Papa Securities Corp. Equities Strategist Manny P. Cruz said in a text message.
“Market rebound was spearheaded by [Globe Telecom, Inc.] after news that its fintech arm Mynt [Globe Fintech Innovations, Inc.] secured $300 million in funding from different foreign investors led by Warburg Pincus,” Mr. Cruz added.
Globe gained 4.61% or P138 on Tuesday to close at P3,134 per share. Mynt is the operator of e-wallet platform GCash. The additional $300-million funding from the global investment firm brought Mynt’s value to over $2 billion.
“In contrast, [Semirara Mining and Power Corp.] and [DMCI Holdings, Inc.] weakened after coal futures plunged 30%. China’s government stepped up its intervention by boosting coal output in the local market in an effort to calm the economy sparked by an energy crisis,” Mr. Cruz said.
The majority of sectoral indices closed in the green on Tuesday except for mining and oil, which dropped 228.33 points or 2.26% to 9,867.53, and industrials, which lost 180.91 points or 1.67% to finish at 10,650.32.
Meanwhile, holding firms gained 106.84 points or 1.54% to 7,044.24; financials rose 17.10 points or 1.11% to 1,550.19; property went up by 17.43 points or 0.55% to finish at 3,136.32; and services inched up by 6.65 points or 0.35% to 1,895.79.
Value turnover decreased to P7.49 billion with 930.47 million issues traded on Tuesday from the P7.70 billion with 1.12 billion shares that switched hands on Friday.
Decliners beat advancers, 104 against 81, while 46 names closed unchanged.
Net foreign selling declined to P177.79 million on Tuesday, dropping from the P1.24 billion seen on Friday. — Keren Concepcion G. Valmonte