Bourse recovers on bargain hunt despite concerns

By Arra B. Francia, Reporter
LOCAL SHARES recovered on Tuesday as investors went on bargain hunting following Monday’s massive sell-off, persistent fears about a slowing global economy notwithstanding.
The Philippine Stock Exchange index (PSEi) rose 44.01 points or 0.56% to finish 7,907.03, while the all-shares index went up by 17.58 points or 0.36% to end 4,860.45.
“Index took a breather today after yesterday’s almost 200-point drop as the PSEi closed the day 44.01 points up,” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez noted in an e-mail.
Regina Capital Development Corp. Head of Sales Luis A. Limlingan also attributed the PSEi’s decline to bargain hunting. “Investors resorted to bargain hunting after the strong sell-off Monday, after US markets opened the trading week lower when data showed weakness on the global economic front… This happened while investors continued to fret over the inversion of the [US] yield curve [signaling a possible US recession ahead],” Mr. Limlingan said in a mobile phone message.
Financial markets have been reacting to the US yield curve inversion, with long-term bonds now having lower interest rates compared to short-term ones.
Many major Asian markets recovered, with Japan’s Nikkei 225 and TOPIX, Hong Kong’s Hang Seng, South Korea’s KOSPI and India’s S&P BSE Sensex rising 2.15%, 2.57%, 0.15%, 0.18% and 0.36%, respectively, although the Shanghai SE Composite dropped 1.51%.
This time, four of the six local sectoral indices edged up: property by 28.73 points or 0.7% to 4,085.33, holding firms by 51.95 points or 0.67% to 7,778.67, financials by 7.06 points or 0.4% to 1,763.95 and industrials by 41.54 points or 0.35% to 11,682.16.
The remaining two sub-indices dropped: mining and oil by 28.40 points or 0.34% to 8,112.83 and services by 1.56 points or 0.09% to 1,594.90.
Investors abroad remained predominantly bullish for a fourth straight trading day, with net foreign buying nearly halved to P369.81 million from Monday’s P666.904 million. Some 971.314 million shares worth P5.388 billion changed hands on Tuesday, compared to Monday’s 708.80 million worth P5.39 billion. This time, stocks that gained outnumbered those that dropped, 112 to 76, while 42 others ended flat.
Papa Securities’ Mr. Perez noted that Ayala Land, Inc. (up 1.48%), SM Prime Holdings, Inc. (0.13%) and SM Investments Corp. (1.18%) saw the biggest net foreign buying on Tuesday at P230 million, P183 million and P60 million, respectively.
Fourteen of Tuesday’s 20 most active stocks gained, including Security Bank Corp. (2.56%) and Metropolitan Bank and Trust Co. (up 1.7%). The same list showed six losers, including Cemex Holdings Philippines, Inc (-4.73%) and Wilcon Depot, Inc. (-3.82%).