The Philippine benchmark stock index rebounded to 6,100-point territory on Wednesday with an almost 6-percent increase, the biggest one-day leap since August 2007.
The market is expected to rally in the following days from bargain hunting, positive news on US economy, the surge of other Asian markets as well as the encouraging income performance of listed companies in the first quarter of the year.
Philippine Stock Exchange (PSE) Chairman Jose Pardo said the market decline of the past few days “served to put some stocks at attractive prices.”
Juanis Barredo, COL Financial technical analyst, said the market is recovering from the slump “given the oversold levels.”
“It is our expectation that a few rally days can come out. [Market is] still choppy but hopefully we can adjust back closer to 6,400 to 6,500 points,” Barredo said.
First Grade Finance Inc Managing Director Astro de Castillo said investors are bargain-hunting after the benchmark market index dropped below 5,800 points on Tuesday.
“Though jitters are still there, [we should]expect market volatility to end as sentiments in foreign [indices]remain positive,” del Castillo said in a phone interview.
He added that the market would go “up and down” and will continue to consolidate below 6,500 points.
Del Castillo said the market is in bearish because the benchmark index has plunged by more than 20 percent, but added that “there is no technical description of a bear market” and that the market will go on consolidation mode.
Compared to the 5.3-percent record one-day increase in 2012, the PSE index on Wednesday rebounded by 5.70 percent or 329.88 points to 6,118.94. The broader all-shares index advanced by 4.77 percent or by 171.03 points to 3,759.67.
All counters ended Wednesday’s trading session in the green, with holding firms going up by 6.91 percent or 351.75 points to 5,443.69. Industrial registered an increase of 6.87 percent or 606.04 points to 9,421.73.
Mining and oil added 308.60 points or 2.48 percent to 12,776.80, while property gained 140.06 points or 6.11 percent to 2,431.07.
Also, financials climbed by 4.38 percent or 65.59 points to 1,563.14, while services surged by 3.30 percent, or 58.66 points to 1,837.13.
The most actively traded companies, which recorded a two percent to eight percent improvement in prices, were SM Investments Corp., Philippine Long Distance Telephone Co., Universal Robina, Ayala Land, LT Group, Metropolitan Bank and Trust Co., SM Prime Holdings, BDO Unibank, and Alliance Global Group.
This time, advancers beat decliners, 146 to 34, while the unchanged issues stood at 30. Value turnover remained high at P9.63 billion, while volume turnover was at 1.58 total issues.
On Tuesday, the PSEi sank by 3.05 percent or 181.99 points to 5,789.06, while the wider all-shares index went down by 2.66 percent, or 97.94 points to 3,588.64.