Bargain hunting helped local stocks extend their winning streak that started a week ago, pushing the stock index out of its four-week losing trend.
“Local share prices got a lift from bargain hunters, overcoming a soft start and pushing the index higher for a fourth straight session,” Jun Calaycay, Accord Capital Equities Corp. analyst, said.
The Philippine Stock Exchange index (PSEi) went up further on Monday from a three-day rally in the previous week, rising 0.95 percent, or 61.34 points to close at 6,526.62. The wider all-shares index went up by 1 percent, or 39.22 points to 3,971.26.
“With the bears showing dominance off the opening bell, the market looked headed to snap last week’s run. The sentiment was spread wide across the Asian region dragged by economic data out of China,” Calaycay said.
“However, the presence of those in the hunt for bargains pushed the bears to the sidelines. The PSEi has now recovered 46 percent of the aggregate losses sustained in the preceding four-week slump—doing so in the last four days,” he added.
All the sectoral indices also ended in green, with most of them gaining significant increases of more than 1 percent.
Holding firms registered a 1.86-percent increase, or 108.05 points to 5,907.28, while the property counter went up 1.64 percent, or 41.39 points to 2,566.37.
Mining and oil posted quite a large improvement, accumulating 194.60 points, or 1.43 percent to 13,826.44, while financials gained 20.86 points, or 1.28 percent to 1,644.70.
Services inched up by 0.56 percent, or 10.84 points to 1,951.04, while industrial rose by 0.05 percent, or 4.97 points to 9,820.75.
Total value turnover was at P6.60 billion with 112 issues advancing and 53 issues declining. Forty issues were unchanged.
On Friday, the benchmark index went up by 137.28 points, or 2.17 percent to close at 6,456.28.
For this week, investors may still take cue from developments overseas in between bargain hunting.
“A new week, a new month and a new quarter began with confidence still hanging in the balance. The three-session rebound that checked a four-week slump may have rekindled optimism but Friday’s slump in US equities may temper sentiments,” Calaycay said.
“Nevertheless, investors will be on prowl for bargains that were opened and have remained unrecognized or ignored, as the market waited for risks to dissipate,” he added.