Local stocks snapped a four-day losing streak on Tuesday as investors hunted for bargains, while stronger manufacturing data eased concerns about the domestic economy.
The benchmark Philippine Stock Exchange Index (PSEi) jumped 2.31 percent, or 137.56 points, to close at 6,093.89, recovering above the 6,000 level after last week’s selloff.
Philstocks Financial Inc. said investors bought battered shares after four straight sessions of declines.
Sentiment also improved after the SandP Global Philippines Manufacturing Purchasing Managers’ Index (PMI) climbed to 54.9 in August from 51.8 in July.
The higher reading signaled a stronger expansion in the country’s manufacturing sector, helping temper worries over the economy, according to Philstocks.
Luis Limlingan, head of sales at Regina Capital Development Corp., said the local index closed higher following strong buying pressure after last week’s selling.
‘Market participants took advantage of attractive valuations, particularly among blue-chip stocks, supporting the broad-based recovery,’ Limlingan said.
Strong trading
Trading activity was strong, with net value turnover reaching P8.24 billion.
Foreign investors, however, remained on the selling side. Net foreign outflows stood at P92.52 million.
Sectoral indices ended mixed. Services led the market’s advance, surging 5.45 percent, while mining and oil posted the steepest decline at 1.20 percent.
Among index members, DigiPlus Interactive Corp. was the session’s top performer, jumping 7.91 percent to P10.78.
Meanwhile, JG Summit Holdings Inc. was the biggest index laggard. Its shares fell 5.88 percent to P20 each.
Analysts noted that the rebound occurred after concerns about the domestic economic outlook and persistent foreign selling pressured the PSEi in recent sessions.
Tuesday’s recovery brought the benchmark back above the psychologically important 6,000 mark, with investors finding some relief from the latest manufacturing data despite continued foreign outflows.