Local stocks capped the week with an upsurge after two days of declines as investors sought out bargain stocks.
The Philippine Stock Exchange index (PSEi) rose 0.71 percent or 50.77 points to close at 7,247.03, while the broader All Shares index gained 0.63 percent or 26.57 points to 4,277.09.
The PSEi followed the lead of US and Asian markets, most of which were modestly higher in Friday trading. The one exception was the Dow Jones Industrial Average, which gave up 3.66 points to finish at 16,801.05.
Rafael Supangco, Angping and Associates Securities Inc. analyst, said in a phone interview that the market rebounded on bargain hunting after the decline on Thursday.
“I think the market just bounced. There was a small rally following the bad news for the whole week that pulled down the market, as well as most global markets. And somehow, valuations played a part,” Supangco said.
Supangco said the market is unpredictable for next week, but said the “the rally may continue” following the declines last week on global issues and concerns.
Joyce Anne Ramos of AB Capital Securities Inc. also said that the market advanced on bargain hunting by investors after last week’s declines.
“More of the bargain hunting from yesterday’s sharp decline. Main index movers today were BDO Unibank Inc., Bank of the Philippine Islands, Jollibee Foods Corp., GT Capital Holdings Inc., and Ayala Corp.,” Ramos said.
The market’s support level has moved back to 7,200, while resistance is seen at 7,300-7,400, she added.
The sectoral indices were all positive, led by financials, up by 1.17 percent or 19.75 points to 1,706.75; mining and oil jumped 1.03 percent or 170.57 points to 16,699.25; property increased 0.86 percent or 23.95 points to 2,820.94; industrials advanced 0.60 percent or 68.54 points to 11,570.77; services were up 0.55 percent or 11.53 points at 2,112.35; and holding firms climbed 0.44 percent or 27.88 points to 6,401.51.
Among the actively-traded stocks, Universal Robina Corp. declined, Energy Development Corp. and Petron Corp. ended flat, while Philippine Long Distance Telephone Company, DMCI Holdings, Ayala Land, Nickel Asia Corp., SM Investments Corp., Bank of the Philippine Islands, and Megaworld Corp. all advanced.
Advancing issues outnumbered decliners, 96 to 68, while 49 stocks were unchanged. Total volume was high at 29.77 billion shares, with P8.92 billion in value changing hands.
On Thursday, the PSEi fell 0.99 percent or 71.80 points to 7,196.26, while the All Shares index likewise dropped 1.009 percent or 43.33 points to 4,250.52.