PHL shares bounce back from slump, PSEi soars above 2.8%

Philippine shares climbed by over 2.8 percent at Tuesday's close on a technical rebound from last week's slump, as investors' hunt for bargains ahead of US Federal Reserve's policy meeting this week.

 

"The market has bounced back... as stocks got sold down to bargain prices especially last Thursday's savage sell-off. There's a lot of buying today," Miguel Agarao, analyst at Wealth Securities Inc., told GMA News Online.

 

Agarao said investors are all eyes on the speech of US Federal Reserve chairman Ben S. Bernanke on the central bank's quantitative easing (QE), which is expected to impact on markets across the globe.

 

"People are also looking forward to Bernanke's speech on Wednesday—Thursday in the Philippines— which will be the actual policy statement on the tapering of QE," he added.

 

The US central bank is set to hold a policy meeting on Tuesday and Wednesday (Wednesday and Thursday in Manila).

 

The bellwether PSEi soared by 179.36 points or 2.83 percent to 6,518.77 at the close. The broader-all shares index added 88.99 points or 2.26 percent to 4,031.42.

 

All sub-indices were in positive territory led by holding firms which gained 3.80 percent and property which advanced by 2.46 percent.

 

More than 901.34 million shares valued at P6.87 billion changed hands. Advancers led decliners 107 to 50 while 46 issues were unchanged.

 

Top index gainers include Universal Robina Corporation at 5.45 percent, SM Prime Holdings Inc. at 3.77 percent, Ayala Corporation at 3.74 percent, Puregold Price Club Inc. at 3.34 percent and Alliance Global Group Inc. at 3.32 percent.

 

Fed's $85-billion bond-buying stimulus program or QE is a measure to keep borrowing costs low and encourage investment, hiring and economic growth and news on scaling back its stimulus program has rocked global markets in the past three weeks.

 

Last Thursday, the main index plummeted by 6.75 percent to 6,114.08 at the close, trimming down— year-to-date—gains to 4.32 percent, as foreign funds continued to flee emerging markets in Southeast Asia. — VS, GMA News