Philippine shares bounced back on Thursday as bargain-hunters returned to the market after a three-day price decline.
Regaining lost ground from an early session where it fell to 7,820 points, the Philippine Stock Exchange index (PSEi) climbed back up toward the close by 0.53 percent or 41.74 points to 7,948.20. The wider All Shares inched up 0.30 percent or 13.43 points to 4,534.32.
“The market was weak this morning but it managed to recover in the afternoon. There was a huge decline over the past three days and this is more of a brief rally. Some issues were already at oversold levels so this is more of bargain-hunting,” Juan Rafael Supangco, research head at Angping & Associates Securities Inc., said.
Jonathan Ravelas, BDO chief market strategist, expects the market will soon climb and retest the 8,000 to 8,100 levels after the PSEi held above 7,800 points despite the scare from the three-day drop.
Only mining and oil remained in the red, closing 0.10 percent lower, while the other sectors gained, led by industrials with a 1.15-percent increase.
Philippine Long Distance Telephone Company and BDO Unibank Inc. were actively traded but ended flat, while GT Capital Holdings Inc., Metropolitan Bank and Trust Company and Aboitiz Power Corp. led the decliners.
Actively traded stocks that rallied were Universal Robina Corp., Ayala Land Inc., JG Summit Holdings Inc., Megaworld Corp. and Energy Development Corp.
Trade volume was thin on Thursday at 851.98 million shares valued at P11.01 billion. Advancers outnumbered decliners 95 to 83, while 50 issues ended unchanged.