Bargain hunters lift PSE index above 6,200

MANILA –The Philippine benchmark index (PSEi) rebounded on Tuesday on positive external developments while trading volume held steady.

By the closing bell, the PSEi gained 0.41 percent, or 25.20 points, to 6,208.83 while the broader All Shares index added 0.28 percent, or 9.28 points, to 3,314.60.

“The index returned above the 6,200 level as a relatively benign market environment, an overnight rally in US shares, and a favorable auction of 20-year US treasuries spurred bargain hunting in local equities,” Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., said on Tuesday.

The 6,250 level is acting as a strong resistance zone, posing a challenge to the bulls. “[W]e need to see more buying at these levels to build a case for a fresh rally,” Colet said. Stock trading volume on Tuesday hit 422.6 million shares on value turnover of P3.91 billion while foreigners were net buyers to the tune of P120.35 million, data from the stock exchange showed.

Financial, industrial and service subsectors rose while property, and mining firms slumped.

Overall, losers outnumbered gainers 86 to 80 while 43 companies closed unchanged.

Jollibee Foods Corp. was the top traded stock as it rose 4.85 percent to P238 per share.

Ayala Land Inc. was flat at P29.85; International Container Terminal Services Inc. was up 1.32 percent to P214.80; SM Investments Corp., down 0.24 percent to P827; and BDO Unibank Inc., up 1.93 percent to P131.90 per share.

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