Stocks advance 2 percent on bargain hunting

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The low equity prices in the stock market attracted bargain hunters that led to the surge of the local benchmark index on Friday.

The Philippine Stock Exchange index (PSEi) accumulated a rise of 128.18 points, or 2.10 percent to 6,242.26, while the broader all-shares index added 62.89 points or 1.64 percent to 3,897.76.

Astro del Castillo, First Grade Finance Inc. managing director, said that there was “bargain hunting” in the market because “prices were attractive,” following the big slump of the PSEi on Tuesday and Thursday.

Del Castillo also said that the stock market remains volatile.


But Harry Liu, president of Summit Securities Inc., said the local stock market is very stable and is under consolidation after days of correction.

He also said that the past declines were because of the strengthening of the dollar and weakening of the peso, which caused massive profit-taking, as well as the slight panic to market declines all over Asia.

“But the long term of the country is very much stable. It is very much positive. The fundamentals is that [the market]could go up later. The government is very much in focus in raising the growth rates and expansion [which would help the stability of the market],” Liu said.

All sectors stepped up slightly: Financials rose by 0.77 percent or 12.11 point to 1,592.57, while the industrial counter ascended by 1.80 percent or 170.91 points to 9,678.79.

Mining and oil increased by 0.58 percent or 89.35 points to 15,609.24, while property improved by 1.95 percent, or 47.15 points to 2,469.89.

Meanwhile, holding firms and services both were up by at least 2 percent, with holding firms gaining 121.87 points or 2.23 percent to 5,594.43, and services adding 44.54 points, or 2.40 percent to 1,901.24.

Gainers triumphed over losers, 111 to 50, while 41 issues were unchanged. Total value turnover, on the other hand, was more than P10.86 billion.

Only Ayala Corp. registered a decline among the top 10 most active traded shares, decreasing by 1.03 percent.

“In the meantime, wait until the peso establishes because right now, the peso is still in the pressure to depreciate. For the next two weeks, we can see a momentum of recovery, but not very big. The short term rally is between 6,800 to 6,900 [point],” Liu said.

“The market is still susceptible to foreign selling. More or less market will consolidate around these levels,” del Castillo said.

On Thursday, the PSEi took its steepest dive for the year, slumping by 6.75 percent or 442.57 points to 6,114.08.

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