Local stock market rebounds

MANILA, Philippines — The local stock index rebounded to the 5,800 level on Monday as investors picked up some stocks after last week’s bloodbath.

The Philippine Stock Exchange index recouped 45.41 points or 0.79 percent to close at 5,812.54. Across the region, trading was mostly downbeat, reflecting jitters ahead of the closely watched US Federal Open Market Committee meetings this week.

“It’s just a technical rebound. Some stocks are looking interesting already,” said Michaelangelo Oyson, managing director at BPI Securities.

He said the risk to the market continued to be funds flow and the valuation gap between North Asia and Southeast Asia.

Because Southeast Asian equities have been trading at a significant premium, he said, funds were going to Japan and Taiwan while even China was now looking cheap.

“China is seeing a surge in interest because of government efforts to reflate the economy,” he said.

At the local market, he said that from a risk-reward respective, some stocks were looking oversold.

All counters were up except for the mining/oil index (-1.88 percent). On the other hand, the industrial and property counters led the day’s rise, both advancing by over 1 percent.

Turnover for the day amounted to P5.49 billion. There were 80 advancers against 69 decliners while 39 stocks were unchanged.

The day’s biggest PSEi gainer was Jollibee (+4.22 percent) while AGI, SMIC, URC, AP, ALI, BPI and Globe all rose by over 2 percent. Conglomerates GT Capital and LTG were both up by over 1 percent.

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