Bargain hunting pushes recovery in share prices

MANILA, Philippines — The stock market recovered yesterday as some investors decided to hunt for some bargains. The benchmark Philippine Stock Exchange index (PSEi) soared 102.87 points, or 1.40 percent, to finish at 7,451.08.

Likewise, the broader All Shares index gained 37.59 points or 0.84 percent to finish at 4,478.73.

Most of the indices also recovered with the holding firms, property, industrial and financials sectors ending in positive territory.

On the other hand, the services and mining and oil sector finished in negative territory.

Despite the positive ending yesterday, the market saw muted trading volume.

Total value turnover reached P4.72 billion even as market breadth was positive, 106 to 75 while 53 issues were unchanged.

Arbee Lu of Papa Securities said the PSEi successfully wiped out Monday’s losses.

“While we saw the index break below its 100 day moving average yesterday, the lack of a confirmation move today (an open and close above the 100-day MA) makes us hopeful that what we saw the past three days was just a retest of the immediate support level,” Lu said.

However, she noted that yesterday’s gains were accompanied by rather modest volume of P4.4 billion.

Foreigners were also net sellers with outflows worth P326 million.

On the other hand, foreign inflows went mostly into San Miguel Food and Beverage, Metrobank and International Container Terminal Services Inc.

“So far, the PSEi is still trading within our uptrend range as the major support is still far below at 7,117, 4.5 percent away from the last close,” she said.