PHILIPPINE SHARES rebounded on Tuesday, with the bellwether returning above the 6,000 mark, as investors bought bargains following the market’s slump and on expectations that the Bangko Sentral ng Pilipinas (BSP) to cut rates on Thursday.
The Philippine Stock Exchange index (PSEi) surged by 3.15% or 183.49 points to close at 6,006.34, while the broader all shares index rose by 2.46% or 86.03 points to end at 3,582.80.
The stock market is closed on April 9 (Wednesday) for a holiday in commemoration of the Day of Valor (Araw ng Kagitingan).
“The local market bounced back as investors hunted for bargains following three straight days of decline,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“Hopes of a rate cut by the Bangko Sentral ng Pilipinas in their upcoming meeting this week helped in the market’s rise,” he added.
A BusinessWorld poll last week showed that all 17 analysts surveyed expect the Monetary Board to slash its target reverse repurchase rate by 25 basis points to 5.5% from the current 5.75% at its policy meeting on April 10 (Thursday).
“Philippine shares made a furious return after falling to its lowest since October 2022, as many countries came to the negotiating table to resolve the tariff war ignited by US President Donald J. Trump,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
World markets won a reprieve on Tuesday after three days of heavy selling that wiped trillions of dollars off the value of shares, but the mood was cautious with a focus on whether Washington might negotiate on some of its aggressive tariffs, Reuters reported.
Asia stocks bounced off 1-1/2 year lows, European shares opened broadly higher and US stock futures pointed to a positive open for Wall Street where shares fell to their lowest in over a year on Monday, before steadying.
All sectoral indices closed in the green on Tuesday. Services increased by 5.51% or 100.14 points to 1,916.38; financials surged by 4.04% or 92.10 points to 2,370.54; industrials jumped by 3.17% or 259.56 points to 8,438.05; mining and oil went up by 1.80% or 154.18 points to 8,714.54; holding firms rose by 1.10% or 53.51 points to 4,890.07; and property climbed by 0.22% or 4.94 points to 2,158.07.
“Century Pacific Food, Inc. was the top index gainer for the day, surging 9.06% to P34.90. DMCI Holdings, Inc. was the worst index performer, dropping 4.55% to P10.50,” Mr. Tantiangco said.
Value turnover went down to P6.42 billion on Tuesday with 1.22 billion shares exchanged from the P13.23 billion with 1.36 billion issues traded on Monday.
Advancers beat decliners, 127 versus 75, while 60 names closed unchanged.
Net foreign selling went down to P427.75 million on Tuesday from P3.24 billion on Monday. — R.M.D. Ochave with Reuters
