Local stocks rebound; index surges 155 pts

MANILA, Philippines - After five consecutive days of heavy losses, local stocks climbed yesterday, with the regional benchmark index rebounding from its lowest level, amid speculation European policy makers will increase efforts to contain the region’s sovereign-debt crisis and prevent a financial meltdown.

Upon resumption of trading yesterday, the main composite index surged 4.16 percent or 154.9 points at 3,876.12 as equity investors scooped up bargain stocks following a three-day rally on Wall Street. Yesterday’s gains nearly erased its losses last Monday but still 6.5 percent away from the key 4,129 resistance level.

The market was closed Tuesday after authorities suspended trading due to typhoon ‘Pedring’ that battered the country, particularly Luzon.

The market has lost P4 trillion since the start of the year from a market capitalization of P11.94 trillion.   From a new historic high of 4,550 last Aug. 1, the market has wiped out around P4.9 trillion in gains. The PSEi had a market capitalization of P7.92 trillion as of yesterday.

Foreign investors took the rally as another opportunity to sell their equity holdings. Net foreign selling stood at P698.6 million.

A total of P7.06 billion worth of shares changed hands with gainers outpacing losers 130 to 33 while 22 issues unchanged. Among the most actively traded stocks were SM Investments, Metrobank, and PLDT.

Foreign investors took the rally as another opportunity to sell their equity holdings. Net foreign selling amounted to P698.6 million.

Mining and oil, which was severely beaten last Monday, logged the biggest gains yesterday with Philex Mining Corp. rising 7.53 percent, Semirara Mining (6.1 percent), Lepanto “A” (8.18 percent) and Lepanto B, ( 10.52 percent).

“Although the surge of optimism was largely borrowed from a fresh outlook for the European fiscal crisis, the near-term prospects remain mixed. Of critical import is the result of the review of Greece’s performance which will open its access to yet another tranche of the bail-out package.