PSEi up 3.54% on positive news

THE Philippine Stock Exchange index (PSEi) extended its gains on Tuesday, surging by 204.57 points, or 3.54 percent, to close at 5,987.72 amid continued bargain hunting, boosted by the improvement in the manufacturing sector and the easing of the 10-year Treasury notes to about 3.583 percent, down from more than 4 percent last week.

“The PSEi corrected higher for the second straight day, in line with the sharp upward correction in the US stock markets by 2.3 percent-2.6 percent despite slower-than-expected ISM manufacturing data to the lowest in more than two years,” Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said. “Moreover, the healthy downward correction in US Treasury yields and in the US dollar versus major global currencies also triggered the relief rally in the US and local stock markets as the benchmark 10-year US Treasury yield eased to new one-week lows, now at 3.583 percent, down from the immediate high of 4.01 percent posted on Sept. 28, 2022.”

The September S&P Global Philippine manufacturing purchasing managers’ index stood at 52.90, and the performance of the US markets overnight also helped to lift the sentiment at home as well.

For market catalysts, Regina Capital Development Corp. Managing Director Luis Limlingan noted that Wall Street will watch for new data from the Job Openings and Labor Turnover Survey on Wednesday (Manila time), which is administered by the Bureau of Labor Statistics.

However, Claire Alviar, research associate at Philstocks Financial Inc., pointed out that the net market value turnover for Tuesday remained low at P4.53 billion.

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“This means that the rally was weak and may not be sustainable in the short run. Since the market remains below the 6,000 level, we still see support at 5,700 while the resistance is pegged at 6,000-6,100,” Alviar added.

All sectors gained this session, led by the holding firms and properties, advancing 4.73 percent and 4.19 percent, respectively.

Advancers won against decliners, 140 to 60, while 40 securities remained unchanged.

Among index members, Globe Telecom Inc. had the biggest gain of 7.61 percent while Wilcon Depot Inc. dropped the most by 5.88 percent.