Stock Market



By Krista A. M. Montealegre, Senior Reporter


Bargain hunting, regional rally buoy PHL stocks




Posted on December 02, 2015


AFTER suffering deep losses last week, local equities staged a technical rebound yesterday to push the benchmark Philippine Stock Exchange index (PSEi) past the 7,000 mark anew, drawing strength from a rally in Asian markets.

The bellwether PSEi rallied by 133.53 points or 1.92% to close at the session’s high of 7,060.60 as the market returned from a three-day weekend.

The wider all-shares index went up by 57.44 points or 1.43% to end at 4,054.35.

“Today’s market is seen as a technical rebound following last week’s drop,” BDO Unibank, Inc. Chief Market Strategist Jonathan L. Ravelas said in a mobile phone message on Tuesday.

“The index was up due to bargain hunting after last week’s disappointing GDP (gross domestic product) data,” Joylin F. Telagen, equity research analyst at IB Gimenez Securities, Inc., said in a separate message.

The PSEi wiped out its gains to finish flat last week after falling by 1.93% on Friday, as investors digested the third-quarter Philippine GDP data that missed estimates and amid a region-wide sell-off led by Chinese equities.

The rally in Asian stocks on Tuesday likewise spilled over to local equities, analysts said, amid encouraging signs of a stabilizing Chinese economy despite lingering weakness in its manufacturing sector.

Official data from the National Bureau of Statistics showed China’s Purchasing Managers’ Index (PMI) came in at a three-year low of 49.6 in November -- marginally lower than the reading of 49.8 in October and below estimates of 49.8. A reading below the 50-point mark indicates a contraction.

The Caixin/Markit China manufacturing PMI, however, contracted at a slower rate than in October, fanning optimism that a series of government stimulus measures have started to have an impact on China’s economy.

Property surged 78.27 points or 2.67% to 3,001.29 and services shot up 40.38 points or 2.54% to 1,626.02 to drive the stock market higher.

Likewise, holding firms gained 128.64 points or 1.97% to 6,631.52; financials advanced 28.85 points or 1.88% to 1,559.64; and mining and oil added 60.61 points or 0.56% to 10,798.90.

Industrial was the lone counter in the red, losing 45.44 points or 0.40% to 11,109.08.

Value turnover fell to P9.99 billion after 1.72 billion shares changed hands, from P16.42 billion on Friday.

Gainers dominated losers, 104 to 68, while 42 issues were unchanged.

Foreign investors were back in buying territory with net purchases of P608.52 million -- a reversal of the net outflow of P1.44 billion in the prior session.

“A break above the 7,100-7,150 levels is needed to break the bearish bias in the near term. Otherwise, continue to see a retest of the 6,800 levels,” BDO Unibank’s Mr. Ravelas said.