PSEi rebounds 1.005% after market bloodbath

Share prices on the Philippine Stock Exchange saw a recovery on Friday as investors took advantage of cheaper stocks after the market saw its worst drop since the Global Financial Crisis due to COVID-19 scare.

The bellwether PSEi gained 57.67 points or 1.005% to 5,793.94 at the closing bell. The broader All Shares increased by 0.87 points or 0.03% to 3,493.64.

“The local market rebounded, backed by bargain hunting, and support from the government...,” Philstocks Financial research associate Claire Alviar said.

“This came after the PSEi dipped below 5,100 level during intraday which triggered the second circuit breaker for this week, amid the COVID-19 pandemic fears,“ Alviar said.

The PSE halted trading for 15 minutes during the morning session and resumed at 9:50 a.m. after the PSEi’s drop of 10.43% triggered a “circuit breaker.”

“Moreover, the instruction of Finance Secretary Sonny Dominguez to the GSIS and SSS to take advantage of the stocks' bargain prices lifted investors sentiment, pushing them to pick up more stocks which seen in the strong value turnover of P10.71 billion —the second highest for this year,” Alviar said.

Finance Secretary Carlos Dominguez III on Friday ordered state pension funds Social Security System (SSS) and Government Service Insurance System (GSIS) to ramp up investment in the stock market to provide support after almost a trillion pesos were wiped out from the local bourse due to COVID-19 scare.

Foreign funds bought P4.567 billion shares and sold P6.209 billion for a net selling position of P1.641 billion.

More than 950.234 million shares valued at P10.270 billion, changed hands. Decliners led advancers, 139 to 87, and 36 issues were unchanged. —LDF, GMA News