PSEi rebounds on bargain hunting, promising global data

Following Thursday's bloodbath, Philippine shares rebounded at early trades Friday as investors went on bargain hunting mode amid promising data pointing to an expanding global economy.

 

The bellwether PSEi regained its upward momentum — after dropping to a nearly 7 percent intraday low on Thursday — and was up 30.50 points or 0.50 percent to 6,167.23 as of 10:13 a.m.

 

"We are slightly up today but on a temporary release or rally as some investors are already looking for bargains," Rafael Supangco, head of research at Angping & Associates Securities Inc., told GMA News Online.

 

"Towards the end of yesterday's bloodbath, some were already bargain hunting as we reached oversold levels," he added.

 

On Thursday, the main index gave up 389.22 points or 5.96 percent to 6,136.73 at the close — in line with the onslaught in regional stocks — as foreign funds staged an exodus from emerging markets in the absence of a clear indication on when the US Federal Reserve will start reducing its massive bond purchases. http://www.gmanetwork.com/news/story/323133/economy/business/psei-ends-trading-down-nearly-6-on-foreign-institutional-selling

 

Supangco said the US market, which was up overnight, was a factor in Philippine equities' rebound.

 

Purchasing manager surveys showed better-than-expected growth in the euro zone, a rebound in China's vast manufacturing sector and US manufacturing activity rising to a five-month high in August, Reuters said.

 

The Dow Jones industrial average was up 66.19 points, or 0.44 percent, at 14,963.74. The Standard & Poor's 500 Index was up 14.16 points, or 0.86 percent, at 1,656.96. The Nasdaq Composite Index was up 38.92 points, or 1.08 percent, at 3,638.71, Reuters reported.

 

With another long weekend ahead, Supangco noted that investors will likely avoid holding positions.

Markets are closed on Monday, Aug. 26, for National Heroes' Day. — VS, GMA News