Bargain-hunting lifts stocks
The local stock barometer rebounded to the 5,800 level on Monday as some investors picked up some stocks after last week’s bloodbath.
The Philippine Stock Exchange index (PSEi) recovered 45.41 points or 0.79 percent to close at 5,812.54. Across the region, trading was mostly weak, 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.
Since 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 perspective, 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 more than 1 percent.
Value turnover for the day amounted to P5.49 billion. There were 80 advancers, which outnumbered 69 decliners, while 39 stocks were unchanged.
The day’s biggest PSEi gainer was Jollibee (+4.22 percent) while Alliance Global, SM Investments Corp., Universal Robina Corp., Aboitiz Power, Ayala Land, BPI and Globe Telecom all rose by more than 2 percent. Conglomerates GT Capital and LT Group were both up more than 1 percent. Doris C. Dumlao
