PSE Index Recovers On Bargain Hunting

The Philippine Stock Exchange (PSE) index rebounded today due to bargain hunting, with all sub-indices posting gains except for the property sector, which slipped as foreign investors continued their selling spree.

The Philippine Stock Exchange (PSE) Index, April 17, 2024

The index closed at 6,450.04 points, up by 45.07 points or 0.70 percent, marking a possible shift in investor focus as the peso weakened to P57.18 per US dollar.

Market bellwether SM Investments emerged as the most active stock, with P599 million in trades, rising by P6 to P938, spearheading the recovery.

However, declines in property giants Ayala Land and SM Prime affected the sub-index, leading to a 1.74 percent loss following net foreign selling by investors amounting to P158 million and P138 million, respectively.

Ayala Land closed at P26.95, down by 25 centavos, while SM Prime slipped by P1.05 to P28.25, though they had highs of P28.10 and P29.65, respectively.

Net foreign selling totaled P511 million on foreign buying of P2.864 billion and foreign selling of P3.385 billion. Value turnover reached P5.89 billion, with 98 gainers, 85 losers, and 53 shares unchanged.

Analysts note a bias in the market towards stocks with dollar earnings due to the weak peso against the dollar, attributed by Bangko Sentral Gov. Eli Remolona to a strong dollar stemming from the US Fed's decision to reverse its interest rate policy due to persistent inflation problems in the US.

The BSP anticipates the US Fed to delay its projected interest rate cuts until September when economists expect the BSP to follow suit.

Among the gainers were Metrobank, BDO Unibank, SPNEC, ACEN Corporation, San Miguel Corporation, Semirara Mining Corporation, ABS-CBN Corporation, PLDT Inc., Philippine Airlines, Belle Corporation, Bloomberry Resorts Corporation, SSI Group Inc., Apex Mining Company Inc., and Nickel Asia Corporation.

Also up were Benguet Corporation, ICTSI, Jollibee Foods Corporation, Bank of PI, Synergy Grid., Meralco, Megawide Construction Corporation, and Aboitiz Equity Ventures Inc.

Finally, closing out the list of stocks that saw gains were Alliance Global Group Inc., DMC Holdings Inc., Ever Gotesco Resources and Holdings Inc., Monde Nissin Corporation, Fruitas Holdings Inc., Century Pacific Food Inc., and Robinsons Land Corporation.

The losers included Security Bank Corporation, GT Capital Holdings Inc., Top Frontier Investment Holdings Inc., Alternergy Wind One Corporation, Axelum Resources Corporation, San Miguel Food and Beverage Inc., Cebu Air Inc., Cosco Capital Inc., Ginebra San Miguel Inc., Vista Land and Lifescapes Inc. (VistaREIT).

GMA Network Inc., Globe Telecom Inc., JG Summit., Philodrill Corporation, Philex Mining Corporation, Aboitiz Power, and First Gen Corporation, also ended the day in the red.

Stocks that remained unchanged included Union Bank of the Philippines, Shakey's Pizza Asia Ventures Inc., PhilSeven Corporation, Atlas Mining and Development Corporation, Premium Leisure Corporation, Megaworld, Petron, and Manila Water.