Business

Good news lift market out of slump

Good news lift market out of slump

MANILA, Philippines — Encouraging news lifted stocks out of a two-month low yesterday as the positive vibes turned investors into bargain hunters, traders said.

With euphoria over the country’s first ever Olympic gold medal secured by weightlifter Hidilyn Diaz also spilling over into stock trades, the benchmark Philippine Stock Exchange index or PSEi rallied by 149.97 points or 2.35 percent to surpass the 6,500 level again at 6,522.58.

Likewise, the broader All Shares index gained 74.60 points or 1.88 percent to close at 4,039.75.

“PSEi rallies along with Asian markets, fully recoups previous session’s losses,” AB Capital Securities said in a commentary.

Traders said investors went bargain hunting on optimism that several sectors particularly retailers, telcos and transportation – may move after President Duterte asked Congress to open these industries to more foreign investment.

“President Duterte’s call for the passage of the bills that would ease foreign investment restrictions in his State of the Nation Address also helped in spurring optimism,” said Japhet Tantiangco, an analyst at PhilStocks Financial Inc.

He said there were also some spillovers from the positive mood on Wall Street.

Trading, however, remained anemic, with net value turnover posting P4.30 billion, below the year-to-date average of P7.39 billion. Foreigners were net sellers with net outflows amounting to P329.92 million.

Other Asian bourses mostly gained yesterday as risk appetite improved following a strong Wall Street session, while global investors awaited the outcome of the US Federal Reserve’s two-day policy meeting.