Bargain hunting halts PSEi’s 5-day downturn

MANILA, Philippines — Local shares snapped a five-day downturn yesterday as investors picked up bargain stocks, lifting the main index out of a three-month low.

The 30-company Philippine Stock Exchange index (PSEi) rallied by 129.54 points or 2.03 percent to finish at 6,523.09 while  the broader All Shares index rose to 3,470.46, up by 55.71 points or 1.63 percent.

Total value turnover reached P4.3 billion. Market breadth was positive, 100 to 70, while 56 issues were unchanged.

Luis Limlingan of Regina Capital said Philippine shares began the last week of the semester on a positive note as investors bought across the board many undervalued stocks.

“The local bourse jumped by 129.54 points (2.03 percent) to 6,523.09 due to bargain hunting following after five consecutive days of market decline, Philstocks Financial said.

Elsewhere in Asia, stocks were mixed as an abortive weekend mutiny by Russian mercenaries raised questions about Russian stability and crude supply, but left investors hesitant to draw any further conclusions.

The private Wagner army then withdrew after striking a deal guaranteeing their safety and the passage of their leader, Yevgeny Prigozhin, to Belarus.

The consequences for the Ukraine war were not clear, though the challenge to Russian President Vladimir Putin’s authority was the starkest in decades of his leadership.

“I don’t think the market can get its head around working out if there are implications,” said Ray Attrill, head of foreign exchange strategy at National Australia Bank in Sydney.

Analysts at RBC Capital Markets said one concern was the possibility of martial law in Russia and its effect on the workforce at ports and oil production facilities.

“This putsch ... has revealed cracks and fragilities that now cannot be unseen,” said Mizuho economist Vishnu Varathan.

“It undeniably amplifies global geopolitical risks.”

With the mutiny being on the watchlist rather than driving action in Asia, investors were left to pore over the latest signs of China’s recovery stalling, which on Monday was softer-than-hoped-for travel figures for last week’s holiday.