PSEi soars 3.48% on bargain hunting

Philippine share prices snapped a nine-day losing streak to stage a rally of more than 3 percent Friday as investors took advantage of an oversold situation.

The bellwether PSEi gained 248.27 points or 3.48 percent to 7,383.00 at the closing bell. The broader All Shares increased by 95.44 points or 2.16 percent to 4,507.40.

“The market was just oversold after falling nine days straight,” COL Financial president Dino Bate said.

The market, on Thursday, entered bear territory with the PSEi plunging 21.23 points from a peak of 9,058.62 on Jan. 29, 2018. 

“Prices are at a bargain, which convinced many to accumulate several stocks,” First Grade Finance president and managing director Astro del Castillo said.

But caution may overwhelm the market next week as the Bangko Sentral ng Pilipinas will hold a policy on September 27.

“All eyes will be on BSP next week, on the move of the BSP,” Del Castillo said.

The BSP’s policy-setting Monetary Board will decide if current policy settings need adjustments in the face of a nine-year high inflation.

Foreign funds bought P7.616 billion shares and sold P7.748 billion, for a net selling position of P132.150 million.

More than 1.196 billion shares, valued at P11.582 billion, changed hands. Advancers led decliners, 114 to 86, and 43 issues were unchanged.

Week-on-week, the main index has lost 30.15 points or 0.40 percent from 7,413.15 on September 14. The PSEi is down 1,341.13 points or 15.37 percent from 8,724.13 on Jan. 3, the first trading day of 2018. —VDS, GMA News