PSEi gets 2.42% lift from bargain hunting, window dressing

Share prices on the Philippine Stock Exchange rose by more than 2 percent on the PSEi Wednesday as investors continued to hunt for bargains and fund managers went on window dressing as the second quarter draws to a close.

The bellwether PSEi gained 169.22 points or 2.41 percent to 7,176.43 at the closing bell. The broader All Shares increased by 69.99 points or 1.62 percent to 4,379.30.

"The rally was due to bargain hunting as we reached oversold levels. And also this is buying ahead of the second quarter window dressing,” Asiasec Equities Inc. chief equity strategist Manny Cruz said.

Fund managers improve their portfolio at the end of a period by engaging in window dressing—buying winning positions and selling losing stocks.

“An oversold rebound stemmed in key blue chips is what drove the rally ... Market has been quite stretched into decline and needed this reprieve rally,” COL Financial chief technical analyst Juanis Barredo said.

Foreign funds bought P3.234 billion shares and sold P3.469 billion during the session, for a net selling position of P235.136 million.

IB Gimenez Securities head of research Joylin Telagen noted the rally was a continuation of bargain hunting in oversold stocks.

“However, it’s just local investors that pushed the index higher,” Telagen said.

More than 675.525 million shares, valued at P6.502 billion, changed hands. Advancers led decliners, 102 to 95, and 43 issues were unchanged. —VDS, GMA News