SHARES inched higher on Tuesday on bargain hunting, with investors picking up cheap issues following the market’s three-day slide.
The benchmark Philippine Stock Exchange index (PSEi) went up by 14.79 points or 0.25% to close at 5,847.37 on Tuesday, while the broader all shares gained 3.34 points or 0.10% to end at 3,152.44.
China Bank Securities Corp. Research Director Rastine Mackie D. Mercado said Philippine shares ended higher on bargain hunting.
“The PSEi appears to have found temporary footing at 5,830 level. The main index managed to close in the black today as bargain hunters likely picked up shares following three straight days of losses. The index appears to have adhered to the 5,830 support in the meantime, even as selling pressure continued to run high,” Mr. Mercado said on Tuesday.
AB Capital Securities, Inc. Vice-President Jovis L. Vistan said in a Viber message that stocks moved sideways as investors remain cautious.
“The market is still hopeful and looking for signs that will prompt the US Fed (Federal Reserve) to shorten the timeline of a pivot. The next important sign may come from the US inflation data, which is due on Thursday,” Mr. Vistan said.
Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message that market participation remained weak ahead the release of the US inflation data on Oct. 13, which could cause the Fed to remain aggressive and tip the US economy into recession.
Value turnover went up to P4.22 billion on Tuesday with 906.40 million shares changing hands from the P2.53 billion with 325.66 million issues traded on Monday.
“Philippine shares closed moderately higher after being sold down yesterday as investors weighed comments from JPMorgan CEO Jamie Dimon, who warned that the US would likely fall into a recession over the next “six to nine months,” and said the S&P 500 could fall another 20% depending on whether the Fed engineers a soft or a hard landing for the economy,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message on Tuesday.
Back home, sectoral indices ended mixed. Financials went up by 18.43 points or 1.24% to 1,501.09; industrials gained 27.86 points or 0.32% to 8,646.29; and holding firms rose by 17.31 points or 0.31% to 5,604.14.
Meanwhile, property declined by 12.38 points or 0.49% to 2,480.83; services shed 5.78 points or 0.37% to end at 1,524.53; and mining and oil dropped by 30.11 points or 0.28% to 10,459.91.
Decliners outnumbered advancers, 93 versus 84 while 42 names closed unchanged.
Net foreign selling declined to P226.27 million on Tuesday from P240.32 million on Monday.
China Bank Securities’ Mr. Mercado placed the PSEi’s support at 5,830 and resistance at 6,000-6,050, while AB Capital Securities’ Mr. Vistan put support and resistance at 5,700 and 6,000, respectively. — A.E.O. Jose