Stocks rebound on early bargain hunting

MANILA, Philippines - Local share prices rebounded yesterday as investors loaded up early on stocks cheapened by two straight days of price declines.

The bellwether Philippine Stock Exchange index or PSEi gained 0.41 percent or 24.74 points to retrace back into the 6,100-territory at 6,117.27. The broader All Shares index rose 0.2 percent or 7.76 points to 3,858.02.

“I think it helped that the International Monetary Fund (IMF) revised its growth projection for the Philippines,” Astro C. del Castillo, managing director of First Grade Finance Inc., said in a phone interview.

IMF raised its 2012 and 2013 growth forecasts for the Philippines to 6.5 percent and six percent, respectively, up from its earlier 4.8-percent projection for both years.

Markets overseas also performed well, giving investors enough reasons to pick up stocks, Del Castillo added.

Around Asia, stock markets were mostly higher yesterday, supported by Congress averting a US government default and a pickup in China’s manufacturing in January.

Japan’s Nikkei 225 index reversed course after three days of losses, rising one percent to 10,620.87. Australia’s S&P/ASX 200 advanced 0.4 percent to 4,808.50. Benchmarks in Singapore, Thailand and New Zealand also rose.

Meanwhile, the Dow Jones industrial average rose 0.5 percent to close at 13,799.33, the highest level since Oct. 31, 2007. The Standard & Poor’s 500 index rose 0.2 percent to 1,494.81. The Nasdaq composite rose 0.3 percent to 3,153.67.

 

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