Index rebounds on bargain hunting

MANILA, Philippines - Philippine share prices rebounded yesterday as investors gobbled up bargain stocks following Thursday’s loss due to the lower-than-expected third quarter economic growth.

The Philippine Stock Exchange index (PSEi) rose modestly by 0.40 percent or 29.04 points to 7,294.38, while the broader all shares index also gained 0.40 percent or 16.93 points to 4,296.69.

Analysts said bargain hunting kicked in yesterday, pushing the benchmark index just a few points below the 7,300 level despite a gloomy mood in most markets in the region.

“Thursday’s sharp retreat prompted bargain hunters to shop for stocks that have weakened, as disappointing third quarter GDP is factored-in, said Jason Escartin, Investment Analyst at F. Yap Securities.

Asian shares were mostly down due to reports of unsatisfactory outcome in the Organization of Petroleum Exporting Countries’ meeting in Vienna. US markets, meanwhile, were closed on Thursday for a Thanksgiving holiday.

Locally, most counters finished in the green except for property firms which fell 0.02 percent or 0.54 points.

Industrial firms posted the largest gain during the session, improving 0.96 points or 113.85 points.

Market breadth was positive as advancers overcame decliners after Thursday’s pummeling, 106 to 76, while 49 stocks were unchanged. Value turnover stood at P8.67 billion.