The recovery trend for the local stock market continued as bargain hunting among
investors persisted, sending back the main index to the 6,700-point level.
In a phone interview, Astro del Castillo of First Grade Finance Inc. said that extended bargain hunting caused a “reversal of fortune” in the local market, which was down on Monday until Wednesday from global uncertainties.
“It’s just bargain hunting again after several days of slump,” he said.
Del Castillo, however, said that further consolidation may occur since the jitters brought by the global market are still there.
Jun Calaycay, Accord Capital Equities Corp. analyst, added that moving forward, the market will be driven by investors’ search for bargains.
The Philippine Stock Exchange index (PSEi) advanced further in the last trading session for the week, rising 1.41 percent, or 92.94 percent to close at 6,701.95.
The wider all-shares index also improved 1.19 percent, or 48.80 points to 4,148.41.
For the sub-indices, financials posted the largest improvement, climbing 2.47 percent, or 41.19 points to 1,707.24, followed by the property counter, which perked up 2.13 percent, or 56.35 points to 2,703.20.
Services gathered an additional 30.89 points, or 1.59 percent to 1,972.80, while industrial gained 116.48 points, or 1.13 percent to 10,444.42.
Mining and oil accumulated 112.39 points, or 0.69 percent to end at 16.475.95, while holding firms ended almost flat, inching up by 51.59 points, or 0.87 percent to 5,998.33.
Total value turnover was lower at P9.5 billion with 115 issues edging higher than the 36 issues that headed toward the opposite direction.
Only 38 issues were unchanged. Some of the actively traded stocks were SM Investments Corp., Metropolitan Bank and Trust Co., Philippine Long Distance Telephone Co. and GT Capital Holdings Inc., among others.
Of the several stocks that were traded actively, only Aboitiz Equity Ventures’ stock price declined. On Thursday, the PSEi ended its three-day losing trend and managed to go back to the 6,600-point mark.
The index regained 0.78 percent, or 51.12 points to close at 6,609.01, while the wider all-shares index added 0.80 percent, or 32.37 points to 4,099.61.
This despite the market trading lower at the 6,400-point mark during the early trading hours on Thursday. All the sectors also improved.
“Thursday’s trade is an indication that investors continue to reckon the domestic prospects as promising. The slump that we have gone through resulted from sharing global sentiments and setting aside the local picture for a moment,” Calaycay said.