PSEi returns to level 7,000 on bargain hunting

SHARES rose on Tuesday on last-minute bargain hunting and the government’s approval of the Civil Service Act, which will allow full ownership in sectors like telecommunications to further liberalize the Philippine economy.

The benchmark Philippine Stock Exchange Index (PSEi) climbed 52.34 points or 0.75% to close at 7,008.94 on Tuesday, while the broader stock rose 18.16 points or 0.49% at 3,715.79.

“The local stock market jumped on the hunt for last-minute bargains. The signing of the Civil Service Amendment Act also helped the market rally for today,” Claire T. Alviar, financial research associate at Philstocks, said in a Viber message.

President Rodrigo R. Duterte on Monday signed Republic Act No. 11647, which amends the 85-year-old Civil Service Act, excludes telecommunications, inland waterways, railroads and subways, airlines , highways and tolls and airports of the definition of a public utility. This means that they will no longer be subject to the 40% foreign ownership cap for public services under the Constitution.

“At the start of trading, the market was trading in the red amid Russian-Ukrainian tensions and concerns over rising oil prices which spiked again following reports that the Union The European Union was considering banning Russian oil. Apart from that, there was also a negative fallout from the performance of the US markets overnight,” Ms. Alviar added.

Oil prices rose more than 7% on Monday, with the global benchmark Brent soaring, as European Union countries disagreed on whether to join the United States in a Russian oil embargo after an attack on Saudi oil facilities, Reuters reported.

Brent crude futures were at $115.62 a barrel, up $7.69 or 7.12%, while US West Texas Intermediate crude futures closed at $112.12 on barrel up $7.42 or 7.09%.

“Philippine stocks were bought back at the close as investors speculated after Federal Reserve Chairman Jerome Powell said the central bank was open to higher rate hikes to combat rising inflation. Regina Capital Development Corp. Sales Manager Luis A. Limlingan said in a Viber message. .

The U.S. central bank must act “quickly” to rein in too-high inflation, Powell said on Monday, adding that it could use larger-than-usual interest rate hikes if necessary, Reuters reported.

The majority of sector indices ended in the green with the exception of industrials, which fell 54.32 points or 0.58% to 9,277.27, and mining and oil, which fell 48.38 points or 0.39% to 12,270.32.

Meanwhile, financials climbed 33.86 points or 2.08% to 1,658.19; services rose 24.55 points or 1.32% to 1,880.47; real estate rose 22.08 points or 0.66% to 3,359.81; and holdings gained 7 points or 0.10% to 6,651.62.

Turnover in value fell to 6.67 billion pesos with 1.11 billion shares traded on Tuesday from 7.60 billion pesos or 974.77 million issues the previous trading day.

Decliners outnumbered advancers, 81 to 77, while 60 names closed unchanged.

Net overseas sales fell to 838.47 million pesos from 860.2 million pesos on Monday. — LMJC Jocson with Reuters

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