PSEi bounce back to 7,000 level

Local share prices bounced back yesterday as investors snapped up beaten down stocks, shadowing the recovery in US markets. The Philippine Stock Exchange index (PSEi) gained 97.49 points, or 1.4 percent, to end the week at 7,064.33 with only the Mining and Oil sector continuing to retreat. Trading activity was slightly weaker with 892.97 million shares worth 14.97 billion changing hands. But decliners topped advancers, 99-80, with 58 issues unchanged. “Philippine shares made back some substantial gains after US stocks staged a strong comeback last night, regaining much of the ground lost in a rout during the prior session,” said Regina Capital Development Corporation Managing Director Luis Limlingan. He noted though that, “gains were limited to below 7100 as the futures market was trading mostly in the red down more than 200 points in the afternoon session. Most of Asia also closed lower as investor grapple with a potential slowdown in the world economy given the ongoing trade wars.” “This is a short-lived bounce, since it was the worst performer and had seen a steep drop yesterday, I think investors think the 6,900 level of the index is a good time to buy... the last time it hit that level, investors bought back,” said Miguel Ong, research analyst at AP Securities. Real estate conglomerate Ayala Land, Inc. gained 2.1 percent and SM Investments Corp added 1.5 percent. (JAL with Reuters report)