Bargain hunting buoys share prices

MANILA, Philippines — The stock market opened the week on a strong note, buoyed by bargain hunting as investors took advantage of some stocks that have become cheaper over the past weeks.

The benchmark Philippine Stock Exchange index (PSEi) surged by 84.90 points, or 1.45 percent, to close at 5,930.92, while the broader All Shares index gained by 45.84 points, or 1.32 percent, to finish at 3,513.37.

Most indexes were up except for the financials which ended in the red.

Total value turnover, however, was thin at P4.88 billion even as market breadth was positive with 125 gainers and 74 losers, while 45 issues were unchanged.

Philstocks Financials gave this comment: “Bargain hunting lifted the local market by 84.90 points or 1.45 percent at 5,930.92. Value turnover was thin, however, at P4.88 billion, below the year to date average of P6.46 billion. This implies that many investors are staying on the sidelines amid the market uncertainties.”

During yesterday’s session, properties led the rally, climbing by 2.56 percent. Bankers were the only losers, shedding 0.54 percent.

Chris Mangun of AAA Equities said that overall, investors remain cautious, and that the market may continue to move sideways until investors are more confident that the economy is on track to recovery.