Stocks recover on late buying

MANILA, Philippines — Share prices swiftly recovered from Tuesday’s fall as a late buying spree in a highly volatile session pushed  the main index back in the green yesterday.

In contrast, most Asian shares fell sharply yesterday after a broad slide on Wall Street as investors reacted to a surge in US government bond yields.

The benchmark Philippine Stock Exchange index (PSEi) finished at 6,934.11, up 48.75 points or 0.71 percent, while the broader All Shares index gained 12.29 points or 0.29 percent to close at 4,297.

A total of P9.878 billion worth of shares changed hands, with advancers outnumbering decliners, 109 to 85.

“The PSEi swings from losses and gains amid the US market route. The PSEi fell 113 points before recouping losses and ending the day up 48 points,” AB Capital Securities said.

Despite the recovery, net foreign selling continued for the fifth straight day, ending with a net outflow of P1.47 billion.

“Investors returned to the Philippine market as fund managers stayed away from US equities, which fell in an interest rate-induced sell-off. Prospect of the world’s leading central banks moving more aggressively to stamp out inflation rattled financial markets, with Treasury yields trading near three-month highs of 1.567 percent, its highest since June,” said Luis Limlingan of Regina Capital

Philstocks Financial, for its part, attributed yesterday’s market recovery to last-minute bargain hunting.

“Prior to this however, the market was in the red territory due to the negative spillovers from Wall Street caused by the rise in US Treasury yields and US government shutdown worries,” it said.

A swift rise in Treasury yields is forcing investors to reassess whether prices have run too high for stocks, particularly the most popular ones.