Local stock market rebounds

MANILA, Philippines—The local stock market ended a four-day slump on Thursday as investors took heart from an improved global risk appetite.

The main-share Philippine Stock Exchange index recouped 29.34 points or 0.58 percent to finish at 5,046.78.  All counters firmed up especially the holding firm sub-index (+1.17 percent), in turn getting a kick from JG Summit (+6.3 percent to P31.25).

Dealers said JG Summit’s outperformance for the day was due to an upgrade by CLSA  on its net asset value and 12-month price target on the Gokongwei-led conglomerate to P43 per share.

There were 91 advancers that defeated 69 decliners while 44 stocks were unchanged. Value turnover had improved to P5.3 billion from Wednesday’s P3.71 billion but this was still thinner than the over P7.85 billion daily average in the first quarter.

Dealers said some investors were still in the sidelines, sticking to blue chips and strong second-liner stocks, given jitters closer to home arising from North Korea’s rocket launch and Wednesday’s strong earthquake in Indonesia.

Other index stocks that contributed to the PSEi’s recovery were SM Investments, PLDT, AGI, URC, Metrobank, BDO, Meralco, AP, Megaworld, AC, ICTSI, MPI and EDC.  Union Bank and Security Bank were likewise up in heavy trade.

On the other hand, DMCI bucked the day’s upswing.

“Global markets rallied overnight, with improved sentiment as the previous sell-off was seen overdone,” said investment bank Credit Agricole CIB. “That said, risk assets failed to recoup all of their losses.”

Asian currencies and rates are likely to be trade in ranges on Friday, as markets await the release of Chinese numbers the same day.

Another favorable economic indicator for the day was the report that Philippine exports had expanded by 14.6 percent year-on-year in February to $4.43 billion, much better than market consensus. Total exports for the first two months of 2012 showed an increase of 8.8 percent to $8.55 billion from a year ago.