Stocks bounce on bargain hunting

Published May 10, 2021, 5:04 PM

by James A. Loyola

The local stock market finally gained after losses in the past 6 sessions as investors began to pick up battered stocks.

PSE file photo

The main index rose 58.70 points or 0.94 percent to close at 6,317.41 as all sectors rose across the board.

Volume remained low though at 2.05 billion shares worth P4.57 billion as gainers beat losers 116 to 97 with 46 unchanged.

“Philippine shares closed higher as bets began to pour on the latest first quarter GDP figures, more earnings releases and the possible easing of US monetary policy following the weaker April jobs report, “ said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “Furthermore, the BSP’s stress test showed that the financial soundness indicators of the banking industry remain sound.”

Philstocks Financial Senior Analyst Japhet Tantiangco said “The local market snapped its 6-day losing streak on the back of bargain hunting.”

He noted that, “Investors were cheered by the OCTA Research Group’s report which shows that the COVID-19 situation in the National Capital Region is improving, as it raises hopes of further easing of restrictions in the said area.”

Tantiangco said “Progress in our COVID-19 vaccine procurement amid the delivery of additional doses of Sinovac and AstraZeneca’s vaccines to the country also helped this Monday.”

AAA Equities Head of Research Chris Mangun said “The market recovered some ground and ended higher on lighter selling pressure. Gains were mainly from holding firms that took heavy losses last week.”

“Despite the rebound, the sentiment remains the same. Investors are still very cautious, which we expect will continue until we see more progress on the inoculation,” he warned.