Stocks bounce on bargain-hunting

The local stock marker bounced on some bargain hunting Tuesday, May 16, as investors wait for cues on interest rates and US debt ceiling talks. The Philippine Stock Exchange index (PSEi) rose by 65.75 points, or 1.01 percent, to close at 6,588.90 as Conglomerates led the advance while only the Mining and Oil counter retreated. Volume remained thin at 2.7 billion shares worth P5.18 billion as gainers edged out losers 94 to 91 with 53 unchanged. “After the two consecutive selloffs, the local bourse was able to bounce today as the US market assess on going debt ceiling negotiations,” said Regina Capital Development Corporation Managing Director Luis Limlingan. Philstocks Financial Assistant Research Manager Claire Alviar said “The local bourse gained, fueled by optimistic expectations that the Bangko Sentral ng Pilipinas would consider a pause with monetary tightening during their upcoming meeting as inflation eases.” “Moreover, the increase of cash remittances by 3 percent year-on-year in March and the positive sentiment from Wall Street overnight also brought optimism on the local bourse.” China Bank Capital Managing Director Juan Paolo Colet said “The index rebounded on the back of bargain hunting as well as speculative positioning ahead of crucial US debt ceiling talks. Investors took advantage of the market’s recent slide to pick up quality names, helping drive up the index to close near its 6,600 resistance.” He added that, “The market also benefited from some hope that the resumption of high level negotiations on the US debt limit could offer a breakthrough.”