Index rallies as investors gobble up bargains

MANILA, Philippines – Share prices surged nearly 100 points yesterday, outperforming most Asian stocks, as investors gobbled up bargain stocks.

The benchmark Philippine Stock Exchange index (PSEi) rallied 99.19 points, or 1.34 percent, to finish at 7,500.79, while the broader All Shares index gained 46.35 points, or 1.05 percent, to end at 4,479.17.

Most of the counters closed in positive territory with the biggest gainers led by the property, services and industrial sectors, up 1.70 percent, 1.53 percent and 1.32 percent, respectively.

Only the mining and oil index closed in negative territory, declining by 0.50 percent.

Analysts said the local market also benefitted from the strong consumer data in the US.

Luis Limlingan, managing director at Regina Capital said US stocks closed narrowly mixed as the strong consumer spending data since 2009 was offset by a surprising drop in consumer confidence.

“Technical resistance in the S&P 500 also played a part as did a Guardian poll that showed UK voters were leaning toward a “Brexit,” Limlingan said.

In addition to the US stocks, Limlingan said regionally, China’s factory index for May came slightly better than anticipated at 50.1.

China’s PMI or the so-called Purchasing Managers’ index is an indicator of the economy. A reading above 50 indicates expansion in activity while a number below that indicates contraction in manufacturing.

During yesterday’s session, value turnover stood at P8.17 billion as advancing stocks outnumbered decliners, 104 to 73. Fifty-six stocks were left unchanged.