Bargain-hunting and expectations that inflation ended within the government’s target range fueled the local bourse’s rally on Monday, snapping a four-session losing streak and with all sectors ending in the green.
By the closing bell, the benchmark Philippine Stock Exchange Index (PSEi) rebounded by 1.95 percent, or 129.04 points, to 6,742.89.
The broader All Shares Index climbed by 1.35 percent, or 50.52 points, to close at 3,789.6.
A total of 386.31 million shares worth P4.65 billion changed hands, stock exchange data showed. Foreigners remained net sellers as outflows totaled P77.68 million.
Japhet Tantiangco, research head at Philstocks Financial Inc., said investors took advantage of the market’s decline for four consecutive trading days last week as they hunted for cheap stocks.
At the same time, Tantiangco said traders cheered expectations that inflation settled at the lower end of the Bangko Sentral ng Pilipinas’ 2- to 4-percent target range.
An Inquirer poll showed an average forecast of 2.5 percent for November, faster than the 2.3 percent recorded in October due to damage caused by recent typhoons and a weak peso.
Investors snapped up shares of service-related firms the most, led by index heavyweight International Container Terminal Services Inc. (up 5.41 percent to P390 each). Holding firms also rallied with the help of SM Investments Corp. (up 4.91 percent to P918) and Ayala Corp. (up 4.25 percent to P638).
Bank of the Philippine Islands was the top-traded stock as it slipped by 0.16 percent to P128.40 per share.
It was followed by ICTSI; BDO Unibank Inc., up 0.45 percent to P155.20; Universal Robina Corp., down 2.09 percent to P77.30; DigiPlus Interactive Corp., up 5.73 percent to P23.05; and Ayala Land Inc., up 1.4 percent to P29 each. —Meg J. Adonis