Stocks rebound as investors snatch up bargains
LOCAL EQUITIES saw gains on Tuesday as investors resorted to bargain hunting, setting aside the failure of the Trump administration to get approval for its health care bill.
The broader all-shares index increased 0.94% or 41.21 points or 4,411.21.
“Investors in the PSEi went on bargain-hunting mode as US stocks did a sharp reversal from an earlier huge loss to end marginally lower,” Regina Capital Development Corp. managing director Luis A. Limlingan said in a mobile phone message on Tuesday.
“It was rather difficult to pinpoint the exact reason for the bounce, but passive funds were the ones buying throughout,” he added.
The S&P 500 cut earlier losses on Monday to end slightly lower, while the Dow declined for an eighth straight session, as investors assessed how the defeat of President Donald J. Trump’s first major legislative action would impact the rest of his agenda.
The Dow Jones Industrial Average fell 45.74 points or 0.22% to 20,550.98, the S&P 500 lost 2.39 points or 0.10% to 2,341.59 and the Nasdaq Composite added 11.64 points or 0.20% to 5,840.37.
“Asian markets also gained today. I guess they just shrugged off the disappointments in the US,” Victor F. Felix, equity analyst at AB Capital Securities, Inc., said over the phone on Tuesday. “We’ll see if we can sustain the momentum and test the 7,400 level.”
Most Southeast Asian stocks recovered on Tuesday from the previous session’s losses, in line with broader Asia, as investors pinned their hopes on Mr. Trump’s stimulus plans after the health care policy setback.
Singapore led the gains, rising nearly 1%. MSCI’s broadest index of Asia-Pacific shares outside Japan rose as much 0.70%.
Investors need to monitor Mr. Trump’s policies closely, because they are not easing concerns, said Teerada Charnyingyong, an analyst with Phillip Securities Thailand, adding the President’s policy moves will be in focus at least until the next US Federal Reserve meeting.
Of the six sectoral indices, only mining and oil ended in the red, dropping 0.42% or 51.39 points to 12,018.17.
The holding firms counter posted the largest gain, rising 1.69% or 124.60 points to 7,468.86; financials climbed 1.57% or 28.47 points to 1,835.46; services went up 0.71% or 10.87 points to 1,527.17; industrials edged up 0.44% or 48.43 points to 10,876.62; and property closed 0.17% or 5.55 points higher at 3,176.02.
Advancers outpaced decliners, 100 to 80, while 48 issues were unchanged.
Value turnover stood at P6.62 billion, slightly lower than Monday’s P7.77 billion, as 1.59 billion shares changed hands.
Foreigners turned buyers with net purchases reaching P53.21 million, a reversal of the prior trading day’s P523.80-million net outflow. -- Janina C. Lim with Reuters