Stock Market


Stocks rebound on bargain hunting after plunge




Posted on November 11, 2016


THE MARKET ended in the green yesterday as investors picked up bargains after the Philippine Stock Exchange index (PSEi) crashed to its weakest in six months following the victory of Donald Trump in the Unites States’ presidential election.

The bellwether PSEi bounced back by 62.83 points or 0.88% to end yesterday’s trading at 7,181.87 after giving up 188.76 points or 2.58% to close at 7,119.04 on Wednesday, the local barometer’s lowest level since its May 6 close of 6,991.87 points.

The broader all shares index also recouped 39.91 points or 0.93% to end at 4,322.26.

“It’s just bargain hunting from the previous drop, taking cues from the US and regional markets,” AB Capital Securities analyst Victor F. Felix said by phone.

“It looks like investors recovered from the knee-jerk reaction after the Trump win caught markets unprepared. Most regionals also went higher so we just took cues from there,” he added.

Southeast Asian stock markets rose on Thursday, tracking gains on Wall Street, in a sharp rebound from the shock of Mr. Trump’s presidential victory.

The Dow jumped 1.4%, while the S&P 500 and the Nasdaq both added 1.11%.

Luis A. Limlingan, head of sales at Regina Capital Development Corp., said the market is “still digesting” the outcome of the US election.

“There was bargain hunting but mainly, I think market is just digesting the news of the president-elect in the US. Everyone is on a wait and see mode,” he added.

“Exports data were also pretty impressive yesterday considering that we’ve been on the decline since the start of the year.”

Poll results showed the Republican candidate Mr. Trump emerging the winner in the presidential race after the Nov. 8 vote against Democratic candidate Hillary Clinton, poised to succeed President Barack Obama by January after the latter’s eight years at the Oval Office.

All six domestic subindices ended in the green yesterday, with services leading the rally after gaining 37.95 points or 2.81% to 1,387.60. Industrial advanced by 122.44 points or 1.08% to 11,445.47; financials climbed 17.17 points or 0.99% to 1,749.14; mining and oil was up 100.68 points or 0.85% to 11,872.73; holding firms went up 54.90 points or 0.75% to 7,310; and property inched up by 7.48 points or 0.23% to 3,138.82

Value turnover went down to P7.20 billion after 1.5 billion shares changed hands, from Wednesday’s P8.58 billion. Gainers outnumbered losers, 135 to 56, while 45 issues did not move.

Foreign investors continued to dump shares, with net selling growing to P501.40 million from P213.22 million on Wednesday.

“We’ll continue to be in the afterglow following the conclusion of the US elections,” AB Capital’s Mr. Felix said, noting that “trading could come continue to end in green the at 7,150-7,250” range.

For Regina Capital’s Mr. Limlingan, the PSEi is still trying to break the 7,250 resistance, with support seen at 7,100. -- Imee Charlee C. Delavin with Reuters