Stock Market

Stocks end slide on bargain-hunting

Posted on September 03, 2016

THE local stock market’s benchmark ended in the green yesterday on bargain hunting, halting a nearly week-long slide after US Federal Reserve Chairperson Janet Yellen signalled another rate hike before the year ends.

The Philippine Stock Exchange index (PSEi) closed at 7,807.42, up 34.11 points or 0.44% from Thursday. The all-shares index rose as well by 14.51 points or 0.31% to 4,629.86.

Luis A. Limlingan, head of sales at Regina Capital Development Corporation, said investors might have bought cheap or oversold stocks.

“One possible reason behind the increase of the PSEi today are those investors who went into bargain hunting,” he said.

The interest rate-sensitive property counter led the rebound, gaining 1.54%, followed by the 1.21% advance of the mining and oil sub-index. The financial sub-index however continued its hemorrhage, losing 0.44%.

“Banks will be [mostly] affected by the possibility of an interest rate hike that’s why it suffered a loss today,” said Mr. Limlingan.

“Good data from the jobs report could result to the Fed increasing the interest rate, “ he added.

On Friday last week, the Fed’s Ms. Yellen told participants of the annual Jackson Hole meeting that another rate increase is possible before the year ends. Philippine financial markets were closed for a public holiday the following Monday, but the PSEi followed other bourses in the red when trading resumed last Tuesday.

The trading value yesterday dropped to P7.69 billion from Thursday’s P9.75 billion. A total of 117 issues advanced against 73 that declined while 51 were unchanged. -- Reniel D. Gloriani