Shares bounce back on bargain-hunting

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Bargain-hunting fueled a technical rebound in stocks on Tuesday following a drop to the 7,400-point index territory in previous trade.

Analysts said, however, foreign-led selling remained unabated and is likely to dominate trade again and cause volatility in the coming sessions.

The Philippine Stock Exchange index (PSEi) closed up by a mild 0.66 percent or 49.32 points at 7,505.48, while the broader All Shares index rose 0.42 percent or 18 points to 4,312.27.

Miguel Agarao, investment analyst at Wealth Securities Inc., said the market jumped in a technical bounce when investors started picking up bargains in intraday trade.


“The market is basically bouncing from support [levels]on bargain-hunting, but foreign selling continues unabated,” he said.

In the coming days, the main PSEi may move in a “very volatile” environment.

“You have negative macroeconomic factors as well, such as Greece [debt crisis]and rising bond yields [which bring negative influence on the market],” he added.

All of the sectoral indices advanced on Tuesday, led by services and financials, which posted gains of 1.16 percent and 0.95 percent, respectively.

Active gainers included Universal Robina Corp., GT Capital Holdings Inc., BDO Unibank Inc., Philippine Long Distance Telephone Company, Metropolitan Bank and Trust Company, and Phoenix Petroleum Philippines Inc.

Among the top losing stocks were Globe Telecom Inc., SM Investments Corp., Ayala Land Inc. and Global Ferronickel Holdings Inc.

But overall, decliners outnumbered advancers 85 to 77, with 55 issues closing unchanged. Trade volume stood at 813.4 million, valued at P7.43 million.

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