Shares recover on bargain hunting

MANILA, Philippines - The stock market recovered yesterday following a very slow start earlier in the day after foreign buyers made some last minute bargain hunting.

The benchmark Philippine Stock Exchange index (PSEi) soared 162.41 points, or 2.15 percent, to close at 7,708.42.

On the other hand, the broader All Shares index remained in negative territory, shedding 49.29 points or 1.06 percent.

Likewise, most counters recovered, led by the financials, industrial and holding firms.

Total value turnover reached P8.04 billion as advancers edged out decliners, 110 to 75 while 54 stocks were left unchanged.

Luis Limlingan, managing director at Regina Capital said, “the PSEi shrugged off a slow start despite US stocks closed narrowly mixed as further weakness in oil prices after a weekly inventory data showed an unexpected decline in US crude-oil inventories but an increase in stockpiles of refined products.”

Limlingan said stock markets including the local mart have been whipsawed in recent weeks amid opposing views from Fed officials as investors seek more clarity on the US central bank’s next policy move.

“Our own forecast is for next rate hike to be moved to December, as historically no decision is made prior to election. Most notably the PSEi was trading flat most of the session with some foreign brokers buying up stocks at the last minute on bargain hunting,” he added.