Bargain-hunting pushes PSEi

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Philippine equities prolonged its recovery trend on Monday after the steepest decline registered in the previous week left appetizing share prices for investors, which caused bargain-hunting to continue on Monday.

The Philippine Stock Exchange index concluded Monday’s session with a 1.56-percent improvement, or 97.15 points higher to close at 6,339.41. The wider all-shares index also improved, rising 1.15 percent, or 44.67 points to 3,942.43.

Jonathan Ravelas, BDO Unibank Inc. chief market strategist, said in a text message that bargain-hunting on selected counters helped push share prices higher.

Eagle Securities President Joey Roxas said that the cautious bargain-hunting happened on the anticipation of Federal Meeting later this week.

“Expect very cautious trading for the next couple of days,” he added.

Jun Calaycay, Accord Capital Equities Corp. analyst, said that market participants can expect the Fed statement to focus on assuaging market fears.

“At the end of the day, the uncertainties of how the Federal Reserve will move forward with the stimulus have affected only the sentiments that rule over the stock market. And the wild swings going both ways suggest there is much uncertainty over these uncertainties,” Calaycay added.

Astro del Castillo, First Grade Finance managing director, meanwhile, said over a phone interview that the market may remain in consolidation mode at least for the next three days.

“With results of the US Federal Reserve meeting due only by early morning Thursday [Manila time], trades will continue to be subdued in the next two sessions. We may see some more enterprising investors place bets either way by Wednesday, but over-all, the Philippine Stock Exchange index should be locked in a range over the period,” del Castillo added.

Majority of the sectoral indices also ended in the green with the property counter surging by 3.94 percent, or 97.24 points to 2,567.13, followed by the industrial counter, which went up by 1.72 percent, or 166.87 points to 9,845.66.

Financials similarly gained, accumulating 1.37 percent, or 21.87 points to 1,614.44, while services improved 0.87 percent, or 16.53 points to 1,917.76. Holding firms ended positively flat at 0.66 percent, or 36.89 points to 5,631.32.

Mining and oil, however, didn’t manage to post an increase, losing 0.73 percent, or 114.45 points to 15,494.89. Advancers outnumbered decliners, 99 to 53, while 39 shares were unchanged.

Some of the most actively traded stocks were Alliance Global Group Inc., BDO Unibank Inc. LT Group Inc., Philippine Long Distance Telephone Co. and SM Investments Corp.

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