PHILIPPINE shares rebounded to the 7,800 level as bargain hunters scouted for oversold issues in the aftermath of the ups and downs in recent weeks, analysts said on Monday.
The bellwether PSEi gained 0.50 percent or 38.95 points at 7,806.57. The wider All Shares rose 0.45 percent or 20.68 points at 4,654.93.
IB Gimenez Securities Inc. Research Head Joylin Telagen noted bargain hunters are on the prowl for oversold stocks. “Despite the disappointing gross domestic product data last week, I think investors’ growth sentiment for the year remains strong,” she saod.
Last week, the Philippine Statistics Authority (PSA) reported a lower-than-expected GDP growth of 6.4 percent in the first quarter compared with 6.8 percent a year earlier.
“There is no new exciting news. Actually, we were all surprised, too, but I still maintain that the market is in consolidation this week,” Regina Capital Corp. President Marita Limlingan said.
Investors were able to cover subscriptions to Eagle Cement Corp., which closed its initial public offering (IPO) on Monday, she said.
Eagle Cement launched its maiden share sale on May 15 to 22, at P15 per share. The company sold 500 million shares valued at P7.5 billion, with an overallotment option of 75 million shares. It is scheduled to list on the Philippine Stock Exchange on May 29.
Among the most actively traded gainers were EastWest Banking Corp., Megaworld Corp., AyalaLand Inc. and International Container Terminal Services, Inc.