Stocks bounce on bargain hunting

Published April 14, 2021, 4:23 PM

by James A. Loyola

Local share prices bounced on bargain hunting after suffering losses in the past two sessions.

PSE file photo

The main index rose 65.42 points or 1.01 percent to close at 6,523.21 as sub-indices rose across the board led by banks and holding firms.

However, volume dropped to 1.73 billion shares worth P4.68 billion as gainers outpaced losers 111 to 81 with 55 unchanged.

“Philippine equities edged up post US CPI announcement, but the halt in the J&J vaccine rollout kept the gains in check,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “news that the country is expecting some 20 million doses of the Russian-made Sputnik V in the coming months influenced bargain hunting.”

Philstocks Financial Senior Analyst Japhet Tantiangco said “Last minute bargain hunting sent the local market higher.”

He noted that, “The certification of the bills which seek to amend the Public Service Act, Foreign Investments Act, and the Retail Trade Liberalization Act as urgent by the Malacanang helped spur optimism as these reforms are seen to help boost the country’s investments and long term economic growth prospects.”

AAA Equities Head of Research Chris Mangun said “The PSEi ended higher after bouncing off its immediate support level of 6,440 level in the previous trading session. “

He observed that, “There was minimal trading at the beginning of the session as the sentiment remains subdued due to the potential escalation of the health crisis. Prices were mainly flat with a slight negative bias throughout the day.”

However, Mangun said that the lack of selling pressure at current prices was a sign that there is still some optimism and investors are willing to hold on to current positions despite the lack of positive catalysts. 

“This attracted buyers to come in and pick these shares after several days of losses,” he said.