Fewer than 3K new COVID-19 cases fuel bargain-hunting in stock market

Share prices on the Philippine Stock Exchange closed in the green on Wednesday as investors hunted for cheaper stocks fueled by improved sentiment after new COVID-19 cases were reported to be below 3,000 in a single day.

The benchmark PSEi gained 41.49 points or 0.61% to 6,808.32 at the closing bell. The broader All Shares increased by 3.40 points or 0.08% to 4,078.35.

“The PSEi recovered further as buyers picked up shares of companies that took a beating at the beginning of the week,” AAA Equities head of research Chris Mangun said.

“The sentiment improved slightly, as panic selling was calmed by the fact that new COVID-19 cases came in below the 3,000 mark yesterday,” he added.

On Tuesday, the Philippines tallied 2,668 new infections, breaking the four-day streak of more than 3,000 COVID-19 cases reported in a single day. 

As of March 10, there are a total of 603,308 COVID-19 cases after the Health department tallied 2,886 new infections.

“The PSEi has held support at the 6,600 to 6,700 area however, the current bounce is attributed to bargain hunting which means we may not see it get very far,” Mangun said.

Foreign funds bought P2.537 billion shares and sold P2.616 billion for a net selling position of P78.87 million.

More than 9.141 billion shares valued at P11.071 billion, changed hands. Decliners led advancers, 155 to 72, and 34 issues were unchanged.—LDF, GMA News