Index snaps 2-day losing streak on bargain hunting

MANILA, Philippines - The local stock market rebounded slightly yesterday to end the week in positive territory as bargain hunters picked up stocks that were battered in the past few days.

The Philippine Stock Exchange index (PSEi) added 0.44 percent or 21.75 points to close at 4,925.97, snapping a two-day drop.

The broader all shares index gained 0.26 percent or 8.70 points to 3,293.65.

“Basically the market is still flat. It market remains in consolidation given the risks abroad,” Astro C. del Castillo, managing director of First Grade Finance Inc., said in a phone interview.

Most subindices were in the green, led by industrial firms that gained one percent or 75.54 points to 7,635.63. Mining and oil firms fell 0.73 percent or 174.74 points to 23,571.97 while the service sector declined 0.33 percent or 5.32 points to 1,598.44.

“It was consolidation with an upward bias, with some bargain hunters appearing,” Del Castillo said.

Week-on-week, the bellwether PSEi gained 46.55 points from 4,879.42 on May 18.

Del Castillo said the week turned out to be a consolidation phase as earlier expected.

Turnover rose to P4.98 billion from P3.96 billion a day ago.

Advancers outpaced decliners, 77 to 71, while 42 stocks did not change.

“Same old story for next week. The market will really have to form a base before doing another run for the second half of the year,” Del Castillo said.

Other markets in Asia struggled for firm footing Friday as investor nerves were tested by fizzling economic growth in China and the lack of a concrete plan to pull Greece back from the brink of bankruptcy.

Media reports that some of China’s biggest banks will miss their annual lending targets for the first time in seven years rattled markets, analysts said. Hesitation to take out loans suggests companies are delaying investment due to uncertainty about the economic outlook. – AP

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