Index rebounds on bargain hunting

MANILA, Philippines - Two days of decline in share prices encouraged investors to seek bargain stocks, pushing the main index past the 6,700 mark anew.

The Philippine Stock Exchange index clawed back to the positive territory, gaining 1.12 percent or 74.16 points to 6,711.72. It breached the all-time high record with an intraday peak of 6,723.71.

“The market rose on bargain hunting still supported by low interest rates and benign inflation,” said Jonathan L. Ravelas, chief market strategist at BDO Unibank Inc.

“Investors took recent weakness as an opportunity to enter the market,” Ravelas added.

Inflation picked up to 3.4 percent in February, faster than the three percent year-on-year uptick in January but still within the Bangko Sentral ng Pilipinas’ forecast of 2.8 to 3.7 percent.

Asian shares and Wall Street picked up despite the fall in Chinese stocks as the government cools down the property sector.

In the local bourse, all counters were in the green, led by holding firms that added 1.45 percent or 83.20 points to 5,804.17.

Turnover value sharply rose to P12.66 billion from P10.74 billion on Monday. Advancers outplayed decliners, 84 to 70, while 56 stocks did not change.

In the next trading days, the main index might try to break past the 6,800 for the first time Ravelas said.