Local markets recover as investors scout opportunities

The main stocks gauge ended the day at 7,451.08 points, up 1.40 percent or 102.87 points, which a trader attributed to investors scooping up shares while they are down. (Shutterstock)

MANILA — Bargain hunting powered the Philippine Stock Exchange index (PSEi) into recovery after four days of losing while the peso was lifted by investors who took advantage of a favorable exchange rate to unload their US dollars.

The main stocks gauge ended the day at 7,451.08 points, up 1.40 percent or 102.87 points, which a trader attributed to investors scooping up shares while they are down.

This performance was matched by the All Shares, which increased by 0.85 percent or 37.59 points, to 4,478.73 points.

It was, however, a mix among the sectors although most ended with gains.

Holding Firms led the gainers after it rose 1.96 percent and was followed by the Property, 1.87 percent; Industrial, 1 percent; and Financials, 0.49 percent.

At the end side are the Services and Mining and Oil, which fell by 0.47 percent and 0.08 percent, respectively.

Volume is thin at only 551.63 million stocks amounting to PHP4.72 billion.

Advancers led decliners at 106 to 75 while 53 shares were unchanged.

Relatively, the peso ended the day at 52.77 from 52.8 Monday.

A trader identified the government report about the country’s widening trade gap in October 2018 as among the factors that contributed to the weakness of the local currency for most of the trading day.

On Tuesday, the Philippine Statistics Authority (PSA) reported that trade deficit in the 10th month this year reached USD4.2 billion, the highest recorded monthly gap so far for the country.

This transpired after imports continue to surpass export with growth at 17 percent and 3.3 percent, respectively.

The trader, however, said that some investors unloaded their dollar holdings, which, in turn, boosted the local currency.

For the day, the peso opened at 52.83 from 52.78 a day ago.

It traded between 52.91 and 52.76, resulting to an average of 52.844.

Volume reached USD906.85 million, higher than the USD603.12 million a day ago.