PSEi rebounds to 7,000-level after market rout

Philippine shares recovered on Friday, after plunging to a 21-month low a day earlier, as investors combed the market for oversold stocks.

The bellwether PSEi gained 120.39 points or 1.75 percent to 7,004.77 at the closing bell. The broader All Shares increased by 60.55 points or 1.43 percent to 4,301.80.

“It’s a recovery story for the market today as attractive valuations enticed market players to pick ... select stocks,” First Grade Finance Inc. president and managing director Astro del Castillo said.

On Thursday, the main index plunged to its weakest level in 21 months at 6,884.38— the lowest since it finished at 6,861.31 on Jan. 3, 2017.

“This is due to bargain hunting after some support emerged at the 6,800/6,900 levels and could be limited towards the 7,100/7,300,” BDO Unibank chief market strategist Jonathan Ravelas said.

Foreign funds bought P2.495 billion of shares and sold P3.216 billion for a net selling position of P720.773 million.

More than 636.861 million shares valued at P5.282 billion, changed hands. Advancers led decliners, 127 to 56, and 47 issues were unchanged.

Another round of declines, however, is expected in the coming days.

“If there are no new catalysts to move the market, we can still expect prices to decline,” Del Castillo noted.

Week-on-week, the PSEi lost 73.43 points or 1.03 percent from 7,078.20 on October 5. It shed 1,719.36 points or 19.70 percent from 8.724.13 on Jan. 3, the first trading day of 2018.