INVESTORS returned to hunt for bargains on Friday, helping the market to break a nine-day losing streak and lifting the benchmark PSEi back to the 7,200 level.
The PSEi closed 0.93 percent or 66.46 points higher at 7,227.37, while the All Shares climbed 0.89 percent or 37.95 points to 4,325.72.
Victor Immanuel Felix, equity analyst at AB Capital Securities Inc., said in a phone interview the market staged a “technical rebound” on “bargain-hunting” after nine straight days of declines.
“A lot of investors also expect a near-term bullish run” in light of third quarter corporate results and the third quarter gross domestic product (GDP) numbers to be released this month amid market jitters about the US presidential elections on November 8 and the possibility of a December interest rate hike, Felix said.
“There is a lot of uncertainty in the market that should put investor here in risk-off mode. Ultimately, I think, investors are waiting for the earnings report and the GDP. If the corporate earnings and the GDP turn out to be strong, then they serve as catalysts that can perk up the market. But we have yet to see if these are strong enough to raise the market,” he added.
AB Capital is forecasting the PSEi to hover at the 7,600 level by year end—a “conservative” view compared with other estimates placing the bellwether PSEi at the 7,800 mark.
Services and holding firms led the sectoral gains, at 1.31 percent and 1.21 percent, respectively.
Ayala Land Inc. and Universal Robina Corp. were among the losers. The gainers were Metrobank, Pilipinas Shell Petroleum Corp., SM Prime Holdings Inc., PLDT Inc., Bloomberry Resorts Corp., and GT Capital Holdings Inc.
Some 5.38 billion shares were traded, with a turnover value of P7.73 billion. Advancers outpaced decliners, 135 to 54, while 46 were unchanged.
On Thursday, the PSEi lost 1.26 percent or 91.49 points to end at 7,160.91, while the All Shares declined by 0.90 percent or 39.06 points to 4,287.77.