PSEi firms up after “Bloody Monday”

LOCAL stocks stabilized on Tuesday after Monday’s bloodbath as the slump in prices attracted selective bargain-hunting while risk appetite improved across the region.

The Philippine Stock Exchange index gained 39.33 points or 0.58 percent to close at 6,830.34, overcoming a sluggish start.

The day’s rebound was led by holding firms, which gained by 1.89 percent. The financial industrial and property counters likewise firmed up.

On the other hand, the services counter slipped by 1.13 percent while the mining/oil counter likewise remained in the red.

Total value turnover for the day amounted to P8.38 billion. Despite the PSEi’s rebound, market breadth was still negative as buyers focused on large-cap stocks. There were 85 decliners which edged out 62 advancers while 49 stocks were unchanged.

Traders, however, had little time to trade at the local stock market on Tuesday. Trading was halted at 10:02 am due to a technical glitch and did not resume until 2:55 pm, during which most Asian markets had rebounded. Once trading resumed, traders took heart from the improved sentiment across the region.

China’s stock market, however, remained in the doldrums.

At the local market, Megaworld led the PSEi’s gain, rising by 8.42 percent while SMIC and Bloomberry both rose by over 5 percent. GTCAP rose by 3.87 percent while Metrobank and AGI rebounded by over 2 percent.

SM Prime, Meralco and JG Summit also contributed to the PSEi’s gain.

On the other hand, investors continued to dump shares of PLDT (-4.18 percent) and AEV (-3.17 percent) while ALI and BDO also remained in the red.

Based on the intra-day trading range, 6,600 proved to be a strong support for the market. This level was likewise a resilient support for the market in 2013 when fears of the US Federal Reserve’s tapering of monetary stimulus dragged the market to “bear” territory.