PSEi rebounds on bargain hunting

Philippine share prices rebounded on Monday, as market players chose to pocket gains following the latest economic data released by the United States.

The main PSEi gained 84.90 points or 1.45% to 5,930.92 at the closing bell. The broader All Shares index rose by 45.84 points or 1.32% to 3,513.37.

According to Regina Capital Development Corp., players went bargain hunting after the US last Friday released nonfarm payrolls which rose by 1.8 million in July, above the consensus expectation of 1.5 million.

"Bargain hunting spilled over to the start of the week, as the latest employment report showed the economy added more jobs than expected last month and the latest stimulus from the US boosted sentiment as well. President Trump issued executive orders in the four policy areas that had been expected," he said in a mobile message.

"The extra $400 unemployment payment is likely to last only a month, however. The payroll tax deferment would last through year-end, but consumers might be hesitant to spend extra income without a change in tax law. That said, both policies could put pressure on Congress to agree to a broader fiscal package," he added.

Locally, the Department of Finance (DOF) over the weekend said a P180-billion economic stimulus package is now being readied.

Limlingan was echoed by Diversified Securities Inc. equities trader Aniceto Pangan, who also attributed Monday's rally to the passage of the proposed Bayanihan To Recover As One Act, or Bayanihan 2, in the House of Representatives.

"Mainly, market was up on the approval after third reading of the Bayanihan II Recovery Act at P160 billion for economic recovery," he said in a separate mobile message.

The House of Representatives approved the measure on third and final reading on Monday, while the Senate approved its counterpart version last month.

More than 82.955 billion shares, valued at P4.883 billion, changed hands. Advancers trumped decliners, 125 to 74, and 45 issues were unchanged. — RSJ/BM, GMA News