PHILIPPINE STOCKS rallied to the 5,900 level on sustained buying momentum as investors continued to select up bargains and as market sentiment improved.
The Philippine Stock Exchange index (PSEi) jumped by 1.95% or 113.37 points to shut at 5,912.69, while the broader all shares index went up by 1.41% or 46.32 points to finish at 3,331.88.
This was the PSEi’s best single-day performance since April 8, when it rose by 2.21% or 132.04 points to complete at 6,089.91.
“The local market prolonged its rally as investors continued their bargain hunting. The market also cheered the numerous rollback in fuel prices today as it might assist in the country’s inflation scenario. Finally, the federal government’s move to create a strategic petroleum reserve program helped in today’s session,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
The rollback in fuel prices this week got here after five consecutive weeks of hike in gasoline prices and a second week for diesel.
Energy Secretary Sharon S. Garin also said that the federal government is working on the establishment of a strategic petroleum reserve program, which incorporates constructing recent stockpiling facilities.
The Philippines is vulnerable to the Middle East conflict because it depends heavily on the region for its oil imports, raising concerns over energy security and better fuel costs.
“The Philippine market led to the green as investors shifted back into buying mode, supported by continued bargain hunting that helped reclaim the 5,900 level. The peso’s appreciation against the US dollar further lifted sentiment and underpinned selective inflows into equities,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
On Tuesday, the peso rose by 7.10 centavos to shut at P61.675 against the greenback from its P61.746 finish on Monday, Bankers Association of the Philippines data showed.
All sector indices closed within the green on Tuesday. Services surged by 4.84% or 140.11 points to three,031.38; mining and oil increased by 2.77% or 491.30 points to 18,192.61; industrials went up by 1.09% or 90.98 points to eight,428.07; holding firms climbed by 0.69% or 30.10 points to 4,374.88; property rose by 0.49% or 9.21 points to 1,870.88; and financials advanced by 0.16% or 2.99 points to 1,791.91.
Advancers outnumbered decliners, 98 to 79, while 60 names were unchanged.
“International Container Terminal Services, Inc. was the day’s index leader, jumping 6.41% to P830. Century Pacific Food, Inc. was the important index laggard, falling 4.76% to P25,” Mr. Tantiangco said.
Value turnover dropped to P6.79 billion on Tuesday with 638.23 million shares traded from the P8.50 billion with 564.54 million issues that modified hands on Monday.
Net foreign buying was at P628.73 million on Tuesday, a turnaround from the P1.13 billion in net selling on Monday. — Alexandria Grace C. Magno