Bargain hunting helps end market slump

The stock market finally got out of the doldrums yesterday as investors hunted for bargains.

The Philippine Stock Exchange index climbed by 0.70 percent or 45.07 points to end at 6,450.04, snapping its nine-day losing streak.

The broader All Shares index also finished higher by 0.59 percent or 20.17 points at 3,430.02.

“The local bourse bounced back following nine straight days of decline. Investors took the opportunity to buy bargains near the 6,400 support level,” Claire Alviar of Philstocks Financial said.

Alviar said adding to the positive sentiment was the revision of the International Monetary Fund’s growth forecast for the Philippine economy to 6.2 percent for this year.

“The large sell off that caused shares to touch the 6,400 level on Tuesday may have been a knee-jerk reaction from investors,” AB Capital & Investment Corp. executive chairman Antonio Jose Periquet Jr. said.

“Today, the cooler heads were inclined to buy with the view that rates will fall in the future,” Periquet said.

Yesterday’s net market value turnover declined to P5.33 billion from the previous day’s P6.16 billion.

All sectors were in the positive territory except for property, which fell by 1.74 percent.

Financials led those in the green, rising by 2.07 percent, followed by industrial with a 1.46-percent increase.

Advancers edged out decliners, 98 to 85, while 53 issues were unchanged.

San Miguel Corp. led the index members with a six percent gain, while GT Capital Holdings lost the most with 5.6 percent.