Shares bounced back past the 8,000 level on Tuesday, March 27, with investors going bargain hunting after the main index dipped below the record territories in previous weeks.

The 30-member Philippine Stock Exchange index recovered from a two-day slump, gaining 1.445 or 114.65 points to close at 8,047.03. The all-shares index also climbed 1.21% or 57.79 points to finish at 4,854.46.

“Valuations were likely the main driver of today’s rally since the index is already trading at historic lows in terms of P/E. Technical indicators also point to the index being oversold,” China Bank Securities, Corp. Research Director Garie G. Ouano said in a text message.

Regina Capital Development Corp. Managing Director Luis A. Limlingan also attributed the market’s increase to the performance of global markets on Monday.

“Philippine markets got a boost from US markets making a huge comeback to help it with an early window dressing,” Mr. Limlingan said in a mobile phone message.

The Dow Jones Industrial Average jumped 2.84% or 669.40 points to 24,202.60, while the S&P 500 index rallied 2.72% or 70.29 points to 2,658.55. The Nasdaq Composite index meanwhile closed 3.26% or 227.88 points higher to 7,220.54.

Fears on a looming trade war between the US and China have also started to ease, after the Chinese government said it is open to negotiate with the former. The Chinese government said on Monday that it will maintain trade negotiations and ease access to American businesses.

The local market will suspend its operations on Thursday and Friday, in line with the Lenten break. — Arra B. Francia

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