PHILIPPINE STOCKS rebounded on Monday to ending their eight-day losing streak as investors bought cheap issues and amid data showing that government spending on infrastructure improved as of April.
The Philippine Stock Exchange index (PSEi) rose by 1.85% or 113.98 points to finish at 6,272.46 on Monday, while the broader all shares index gained by 0.96% or 32.57 points to close at 3,407.77.
However, this is still 2.75% or 177.58 points lower than the PSEi’s end-2023 close of 6,450.04.
“The local bourse had a strong rebound following eight consecutive days of decline. Many investors have decided to buy stocks at bargain levels after the market’s steep decline last week,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.
“Philippine shares made a furious rebound to start the week after the dramatic selldown last Friday as investors went bargain hunting across the board ahead of the window dressing to end the semester,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.
The PSEi on Friday logged its worst close for the year thus far at 6,158.48. This was the lowest level seen in over seven months or since its 6,110.88 finish on Nov. 14, 2023.
“Moreover, the increase in infrastructure spending for the first four months of the year helped lift the sentiment. However, the rebound was driven mostly by the local investors, as foreigners remained net sellers,” Ms. Alviar added.
Net foreign selling went down to P403.22 million on Monday from the P1.34 billion recorded on Friday.
Infrastructure and other capital outlays rose by 36.2% to P118.9 billion in April from P87.3 billion in the same month a year ago, according to the latest National Government disbursement report.
For the first four months of the year, infrastructure spending increased by 18.2% to P335.7 billion from P284 billion in the year-ago period.
Almost all sectoral indices closed higher on Monday. Property rose by 3.52% or 83.05 points to 2,440.61; services went up by 2.46% or 46.12 points to 1,918.10; holding firms climbed by 0.84% or 46.58 points to 5,558.22; financials gained 0.78% or 14.63 points to end at 1,879.46; and industrials increased by 0.76% or 67.52 points to 8,842.87.
Mining and oil was the sole decliner, dropping by 0.16% or 13.85 points to close at 8,530.51.
“Among the index members, Century Pacific Food, Inc. achieved the highest gain, increasing by 5.62%, while Alliance Global Group, Inc. was at the bottom, losing 2.3%,” Ms. Alviar said.
Value turnover went down to P6.17 billion on Monday with 356.23 million shares changing hands from the P8.26 billion with 632.74 million issues traded on Friday.
Market breadth was negative as decliners outnumbered advancers, 105 versus 80, while 46 issues closed unchanged. — R.M.D. Ochave
