PHL shares rebound on bargain hunting

Share prices on the Philippine Stock Exchange rebounded on Thursday as investors combed the market for bargain valuations in the aftermath of Wednesday’s selling pressure in Ayala Corp. and SM Prime Holdings Corp.

The benchmark PSEi gained 62.50 points or 0.80 percent to 7,927.20 at the closing bell. The broader All Shares increased by 28.71 points or 0.61 percent to 4,743.84.

“This is … bargain hunting. Investors took positions in yesterday’s battered stocks,” Philstocks Financial Inc. research analyst Japhet Luis Tantiangco said.

Philippine shares lost 1.86 percent at market close on Wednesday, after losing 2 percent during the morning session, dragged by a sell-off selling pressure in SM Prime and Ayala Corp.

Market players resented the fact that Mitsubishi Corp. divested 13 million Ayala shares at a discount of nearly 8 percent.

Reports that the upcoming Manila Bay rehabilitation could affect SM Prime’s planned reclamation projects impacted investor sentiment. 

Foreign funds bought P9.275 billion of shares and sold P5.429 billion for a net buying position of P3.845 billion.

“Best to scrutinize the net foreign flow of P3.8 billion today as a significant chunk of that came from Puregold’s block transaction … Without the Puregold block, the day would have ended with a minimal P3 million net foreign outflow,” P2P Trade Online sales associate Gabriel Jose Perez said.

Investors also took cue from the optimism overnight on Wall Street.

“The optimism on Wall Street last night, caused by good earnings results from their financial space, also helped today’s trading session,” Tantiangco noted.

Asian shares crept higher on Thursday as upbeat bank earnings bolstered Wall Street. Strong earnings from Bank of America and Goldman Sachs eased worries about the earnings outlook.

More than 1.216 billion shares valued at P14.165 billion, changed hands. Advancers led decliners, 101 to 99, and 51 issues were unchanged. —VDS, GMA News