Index recovers on late buying
MANILA, Philippines — The stock market recovered yesterday on late buying after suffering heavy losses on Thursday on fears of rising inflation and escalating trade war between the US and China.
The benchmark Philippine Stock Exchange index (PSEi) gained 44.48 points, or 0.57 percent, to finish at 7,726.72 while the broader All Shares gauge was higher by 21.64 points, or 0.46 percent, to end at 4,687.29.
Total value turnover reached P6.716 billion. Market breadth was positive 120 to 83 while 41 issues were left unchanged.
Bangko Sentral ng Pilipinas Governor Nestor Espenilla Jr. said the weakness of the stock market over the past few months after hitting an all-time high in late January is just a healthy correction.
“The key drivers of equity markets are corporate fundamentals including relative valuation that links potential earnings to share prices. There is market discipline to this. Corrections happen as a reality check. Thats healthy and makes for sustainability,” Espenilla said.
The Philippine Stock Exchange index has slipped to below 8,000 after hitting a record high of 9,058.62 last Jan. 29.
“We have to look at the fundamental drivers and not be too quick to play the blame game,” the BSP chief said.
Gio Perez, a trader at Papa Securities, said the index managed to recover most of its losses from yesterday’s drop on bargain hunting. – With Lawrence Agcaoili
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