Phl stocks regain footing after sharp losses

MANILA, Philippines - Local share prices rose   modesty by 35.47 points yesterday as a respite from major bad news gave investors the pluck to get back into riskier assets.

The Philippine Stock Exchange index (PSEi) gained 35.47 points or 0.73 percent to settle at 4,925.67. Total volume turnover reached 1.04 billion worth P4.03 billion. Gainers outnumbered losers, 89 to 72 while 44 issues were unchanged.

Global markets also rebounded yesterday as investors took comfort that authorities are seeking greater fiscal integration to address the debt crisis and keep Greece from leaving the euro zone.

Leading online brokerage firm COL Financial is sticking to its yearend index forecast of 5,300 to 5,500, citing the country’s much-improved economic fundamentals and the current low interest rate regime.

COL Financial research head April Lee Tan   said yesterday the outlook on local equities remained positive because of the country’s healthy macroeconomic fundamentals, stable corporate earnings growth and low interest rates.

 “The markets are just volatile right now. Once we get clarity on issues overseas, funds will start coming back. We just need a trigger. Investors in general are of the opinion that the Philippines is a good investment destination,” Tan said.

Tan said the market is flush with liquidity and sees funds continuing to flow into emerging markets.

Philippine Stock Exchange president Hans Sicat said the market’s volatility has been driven increasingly by Euro and US headlines.

 “There’s a lot of overreaction right now. Clearly, what we saw was a series of tough headlines on the global front – a weak jobs data and continued uncertainties in the euro zone,” Sicat said.– Zinnia del Peña, AP