LOCAL SHARES bounced back on Thursday because of a rally in the afternoon session, as bargain hunters lifted the main index before closing.

The bellwether Philippine Stock Exchange index (PSEi) added 17.22 points or 0.21% to close at 7,950.98 yesterday, while the broader all-shares index ended flat, recording an uptick of 1.96 points or 0.04% to 4,780.16.

“The sideways trading today ended on a positive note as bargain hunters, backed by optimistic third quarter earnings anticipation, swooped in to lift the local market,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a text message on Thursday.

He added that foreign funds helped drive traction in the local bourse as well, as overseas investors recorded a net buying of P494.99 million.

For AAA Southeast Equities, Inc. Research Head Christopher John Mangun, another contributor in yesterday’s trading were the mixed results in global markets.

“Global equities markets had mixed results again today with some gaining and some losing but basically flat as investors await corporate earnings reports… Here at the PSE, the main index ended slightly higher after being down in early trading on below average trading volumes again today,” he said in an e-mail on Thursday.

US stocks edged higher on Wednesday as investors shrugged off lackluster quarterly reports from industrial bellwethers Boeing Co. and Caterpillar, Inc., though a lower-than-expected revenue outlook from Texas Instruments, Inc. sent chipmakers’ shares lower.

The Dow Jones Industrial Average rose 45.85 points or 0.17% to 26,833.95; the S&P 500 gained 8.53 points or 0.28% to 3,004.52; and the Nasdaq Composite added 15.50 points or 0.19% to 8,119.79.

Meanwhile, Indonesian stocks hit a six-week high on Thursday ahead of the central bank’s key rate decision, while Singapore shares rose on hopes of a revival in economic growth in the city-state.

Back home, four of six sectoral indices ended in the green. Mining and oil went up 53.18 points or 0.58% to 9,128.08; financials rose 10.30 points or 0.55% to 1,869.84; holding firms added 34 points or 0.43% to 7,784.76; and property climbed 11.35 points or 0.27% to 4,192.23.

Meanwhile, industrials dropped 98.33 points or 0.92% to 10,536.37 and services went down 0.02 point to 1,530.99.

Decliners outnumbered advancers, 104 to 80, while 51 names closed unchanged.

Value turnover jumped to P5.19 billion from P4.67 billion on Wednesday, with 660.11 million issues changing hands.

“The market has been operating with value turnover below average for the past 10 trading days. This shows the cautious stance of investors with many shying away from the market while waiting for a catalyst primarily the 3rd quarter company reports,” Philstock Financial’s Mr. Tantiangco said.

Net foreign buying dropped to P494.99 million from Wednesday’s P1.14 billion. — Denise A. Valdez with Reuters

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