Index rebounds following Wall St overnight gains

Share prices closed 2.13 percent higher yesterday in a quick rebound after Wednesday’s sharp losses as investors took their lead from Wall Street’s overnight gains, dealers said.

They said there was also support for select majors ahead of second quarter results although the market remained wary ahead of a US Federal Reserve meeting on interest rates next week.

A technical glitch late in the session prompted the exchange to suspend trading for about half an hour but investors continued to accumulate stocks after business resumed.

The composite index rose 49.18 points to 2,357.55, after trading between 2,308.37 and 2,362.34. Volume was 3.5 billion shares worth P1.18 billion.

The broader all-shares index gained 21.54 points to 1,450.55.

Gains led losers 60 to 30, with 42 stocks flat.

"Buyers were in the market aggressively," said Nestor Aguila of DA Market Securities.

Most had expected the market to decline further Thursday after recent sharp gains that pushed the composite index to an 11-week high on Monday.

"This is a technical rebound that has been partly inspired by Wall Street’s recovery," said Mark Alan Canizares of CitisecOnline.com.

Philippine Long Distance Telephone (PLDT) was the most actively traded stock, rising P60 to P2,065 ahead of its second quarter results next Tuesday.

Globe Telecom, which earlier reported a 37 percent rise in first-half net profit, gained P30 to P1,010.

Ayala Land added 50 centavos to P13.50 while parent Ayala Corp. rose P7.50 to P420. Both firms will announce their quarterly results next week.

San Miguel A was unchanged at P65.50 while San Miguel B added 50 centavos to P72.

Gainers outnumbered losers, 57 to 32, with 40 stocks unchanged in the broader market today. The All Shares Index rose 1.5 percent, snapping a two-day, 2.9 percent slump.

Bank of the Philippine Islands, the country’s largest lender by market value, added P2, or 3.9 percent, to P53.50, after sliding 4.6 percent in the past two days. SM Prime Holdings Inc., the country’s largest shopping mall operator, rose 20 centavos, or 2.5 percent, to P8.10.

"Yesterday’s decline was really steep sending some stocks to trade at bargain levels," said Martin Espanol, an analyst at 2TradeAsia.com in Manila. "It opened a good opportunity for those who believe in this market’s prospects."

Shares worth P884 million were traded, 53 percent less than the six-month daily average. Today’s trading was the smallest in 10 sessions. – AFP