Bargain hunting lifts stock index

MANILA, Philippines — The stock market made a pull back at the last minute yesterday as market investors returned to find some bargains.

The benchmark Philippine Stock Exchange index (PSEi) rallied by 110.69 points, or 1.35 percent, to finish at 8,272.18.

Likewise the broader All Shares index rose 37.60 points or 0.75 percent to finish at 4,993.84.

Most of the other sectoral gauges were likewise in positive territory with the holding firms, financials and property indices leading the gainers.

Total value turnover reached P8.273 billion. However, market breadth was negative, 124 to 79 while 48 issues were unchanged.

AB Capital said market investors are doing some bargain hunting ahead of the second quarter earnings results.

SM Prime Holdings Inc., the Sy-owned property giant, opened the curtains on the second quarter earnings results, becoming the first to report on its income for the period. It posted a 16 percent growth in net income in the first half to P19.30 billion from P16.62 billion a year ago.

Yesterday’s session was in contrast to Wednesday’s performance when the market nosedived ending at 8,161.49, down 89.97 points or 1.09 percent.

It was caused by Jollibee Food Corp.’s drop in share prices after investors dumped their JFC shares. JFC lost 7.99 percent to finish at P251.

This was after the Asian food giant’s announcement that it had acquired California-based The Coffee Bean & Tea Leaf.

Yesterday, however, JFC shares recovered to P236 per share or an increase of 5.98 percent.

JFC will acquire CBTL for $350 million with an initial investment of $100 million. Through its wholly owned subsidiary Jollibee Worldwide Pte Ltd (JWPL, Singapore), it has entered into an agreement to invest $100 million in a new Singapore-based holding company to acquire 100 percent of CBTL.