Bargain hunting buoys share prices

MANILA, Philippines – The benchmark Philippine Stock Exchange index recovered yesterday, ending its eight day losing streak on bargain hunting.

The PSEi gained 35.29 points or 0.50 percent to finish at 7,081.86 while the broader All Shares index gained 7.95 points or 0.19 percent.

Total value turnover reached P6.55 billion. Decliners edged out advancers, 116 to 61 while 53 stocks were left unchanged.

“The market suddenly bounced back during the last few minutes of trading. SMPH, which reported favorable earnings for the first quarter, led the upswing. However, given the low value turn over, most investors remain cautious. Expect market to consolidate within these levels. Positive earnings report can trigger further rallies,” said Astro del Castillio, managing director at First Grade Finance Inc.

Luis Limlingan, managing director at Regina Capital said bargain hunting prevailed during yesterday’s session.

“The Philippine market reverses a five-day selling trend as they switched to bargain hunting, with many blue chip companies reporting first quarter earnings,” said Limlingan.

Investors also looked at external factors.

“The European Commission predicted Eurozone growth will be just slightly weaker than previously forecast. The EC also cut its forecast for inflation mainly as a result of low energy prices. Despite the weaker US trading session, on the macro front US light vehicle sales regained momentum during April,” Limlingan also said.