Philippine stocks trekked back to the 6,600-point level as investors started to hunt for bargains after losing significantly in the past trading sessions.
Jonathan Ravelas, chief market strategist of BDO Unibank Inc., said in a text message that bargain hunting took place on Thursday as investors looked for bargains.
“Share prices across the Asia-Pacific region fell on an overhang of fears the Federal Reserve may be hinting at scaled down stimulus as US economic numbers improve, although recent numbers missed analysts estimates,” Jun Calaycay, Accord Capital Equities Corp. analyst, said.
“The Philippine market, however, traced a different path as investors started to make bets, as the sell-off may have been overdone and a bottom was reached when the index fell below 6,500 for the first time since late March. But this was not before it fell as much as 150 points in the morning session,” he added.
On Thursday, the Philippine Stock Exchange index (PSEi) recovered from its three-day skid, regaining 0.78 percent, or 51.12 points to close at 6,609.01, while the wider all-shares index regained 0.80 percent, or 32.37 points to 4,099.61.
During the early trading hours, the index went down the 6,400-point mark, losing 162.65 points, or 2.48 percent to 6,395.24.
All the sectoral indices improved, with holding firms registering the largest increase, slowly recuperating from previous days’ losses, with a 1.31-percent increase, or 77.08 points to 5,946.74.
The property counter went up by 0.90 percent, or 23.66 points to 2,646.85, followed by industrial, which earned 88.58 points, or 0.87 percent to 10,327.94. Mining and oil improved 0.82 percent, or 132.51 points to 16,363.56, while financials rose 0.78 percent, or 12.91 points to end at 1,666.05.
However, the services index was flat at 0.32 percent, or 6.29 points to 1,941.91. Total value turnover was at P12.12 billion. The gap between advancers and decliners also thinned, 85 to 84, while 38 shares were unchanged.