PHL shares rebound as investors pick up bargains

PHILIPPINE SHARES rebounded on Tuesday as bargain hunting prevailed ahead of the US Federal Reserve’s policy meeting.

The Philippine Stock Exchange index (PSEi) went up by 11.79 points or 0.19% to close at 5,973.78 on Tuesday, while the broader all shares index rose by 7.70 points or 0.23% to end at 3,254.17.

“Shares on the Philippine Stock Exchange recouped earlier losses to close slightly higher as investors picked up bargains following the market’s recent declines, despite lingering concerns over interest rates and geopolitics,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message.

Still, bargain hunting was not enough to lift the PSEi above the 6,000 mark again as many investors stayed on the sidelines as the market is open for trading for only two days this week, Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

Philippine financial markets were closed on Monday for a public holiday. Trading will also be suspended on Nov. 1 and Nov. 2 in observance of All Saints’ Day and All Souls’ Day.

Shares tracked “the rebound in US market sentiment” ahead of the Fed’s two-day monetary policy meeting, which was set to start overnight, Unicapital Securities, Inc. Senior Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message.

The US central bank is expected to keep its target rate unchanged at 5.25-5.5% at the review but reiterate its “higher for longer” policy stance.

“The Fed’s meeting comes after a slew of data showed the US economy remains resilient and comments from Fed Chair Jerome Powell will be scrutinized to gauge how long the interest rates are likely to stay elevated,” Mr. Arce said.

“While the Fed may not make any rate adjustments this week, the possibility of a rate hike in the following meeting is certainly on the table,” he added.

The majority of sectoral indices went up on Tuesday. Property rose by 27.26 points or 1.08% to 2,540.67; financials climbed by 6.65 points or 0.39% to 1,712.36; services increased by 1.75 points or 0.12% to 1,453.07; and holding firms went up by 4.50 points or 0.07% to 5,726.65.

Meanwhile, industrials fell by 56.73 points or 0.66% to 8,477.16 and mining and oil went down by 63.17 points or 0.64% to 9,782.95.

Value turnover went up to P4.09 billion on Tuesday with 416.56 million shares changing hands from the P3.76 billion with 349.83 million issues seen on Friday.

Advancers outnumbered decliners, 94 versus 85, while 50 shares closed unchanged.

Net foreign selling went up to P415.89 million on Tuesday from P328.95 million on Friday. — SJT