Market corrects as bargain hunters step in

MANILA, Philippines — Bargain hunters returned to the market yesterday, pushing the index to close 44.01 points, or 0.56 percent, higher at 7,907.03.

The broader All-Shares index, meanwhile, rose by 17.58 points, or 0.36 percent, to close at 4,860.45.

Most of the indices finished in positive territory too except for the mining and oil and services sectors.

Despite some renewed interest from investors, hesitation still ruled and total value turnover remained thin.

Market breadth was negative, 112 to 76 while 42 issues were left unchanged.

Traders said yesterday’s session was a mere correction after Monday’s strong selloff and after the US markets opened the trading week lower.

“Investors resorted to bargain hunting after the strong sell off Monday, after US markets opened the trading week lower when data showed weakness on the global economic front triggered heavy losses at the end of last week. This happened while investors continued to fret over the inversion of the yield curve,” said Luis Limlingan, managing director at Regina Capital.

Meanwhile, as part of its continuing efforts to entice investors to return to the market, the Philippine Stock Exchange has issued additional rules for follow-on offerings and stock rights offerings of common shares and exchange traded funds.

According to the PSE, an applicant company will be required to disclose in the prospectus an offer price range consisting of a floor price and a cap.

The PSE said listing applications without disclosure of the price range shall not be accepted by the Exchange.