Philippine stocks up on bargain hunting, strong fundamentals

19:51, June 02, 2010      

Email | Print | Subscribe | Comments | Forum 

by Kristine Jane R. Liu

The Philippine stock market on Wednesday bucked the more-than-hundred-point overnight drop of the U.S. market as investors remain bullish on the local equities following the strong performance of the local economy in the first quarter.

Foreign investors, who used to be net sellers, were also seen slowly accumulating the battered stocks, providing further support to the market.

The benchmark Philippine Stock Exchange index on Wednesday rose by 0.7 percent or 22.94 points to 3,289.56, while the broader all- share index gained 0.59 percent or 12.25 points to 2,074.80.

The trading volume reached 1.31 billion worth 3.71 billion pesos (79.8 million U.S. dollars). Foreign investors were net buyers for the third time this week with 399.53 million pesos (8. 59 million U.S. dollars).

Advancers led decliners 56 to 40 while 62 stocks did not move. Of the six counters, only the service sector lost its value.

"We were expecting the local equities to correct because of the Dow but for the past three days, we have noticed that there is already foreign accumulation," Elizabeth Abadillo, an analyst of Angping and Associates Securities, Inc., said in an interview.

But local fundamentals are strong and the 7.3 percent growth of the local economy in the first quarter suggests that Philippines can withstand the Euro crisis should this deteriorate, she added.

"The Philippines remains fundamentally sound. The current retraction in the PSEi was owed to concerns on the debt problems in Europe and the conflict between North Korea and South Korea," said Ignacio Soriano, analyst at Papa Securities Corp.

Aside from the first quarter growth of the local economy, Ignacio noted that other macro-indicators are also up. Exports remain healthy and first quarter corporate earnings are higher than expected.

Analysts said bullish fundamentals prompted both foreign and local investors to engage in small bargain hunting especially since some stocks remain at their oversold levels.

"Hopefully, in the coming days there will be positive developments overseas so that the local market will be able to sustain its rally," Abadillo said.

Energy shares weighed down the U.S. market on Tuesday. The Dow Jones industrial average lost 1.11 percent or 112.61 points to 10, 024.02.

Locally, stocks in the 30-company index closed mixed. Heavyweight Philippine Long Distance Telephone Co. was sold down after rallying during the past days. Ayala Land, Inc. and top lender Banco de Oro Unibank, Inc. extended their rallies.

Source: Xinhua


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Giant red lantern lights up in Tiananmen Square to celebrate the coming National Day on Oct. 1. (Xinhua/Li Xin)
  • A ceremony is held in Taipei, southeast China's Taiwan, on Sept. 28, 2011, to commemorate the 2,562nd birthday of Confucius (551-479 BC), a Chinese thinker, educationist and philosopher. (Xinhua/Wu Ching-teng)
  • The world's first Boeing 787 Dreamliner for delivery arrives at Haneda airport in Tokyo, capital of Japan, on Sept. 28, 2011. The Boeing 787 Dreamliner, whose buyer is All Nippon Airways (ANA), will implement a flight of ANA on Oct. 26 from Tokyo's Narita Airport to Hong Kong in south China. (Xinhua/Ji Chunpeng)
  • A Libyan National Transitional Council (NTC) fighter shows what is believed to be human jawbone found inside a mass grave near Abu Salim prison in Tripoli, Libya, Spet. 27, 2011. The NTC on Sunday said they had found a mass grave containing the bodies of 1,270 people killed by Gaddafi's security forces in a 1996 massacre at Abu Salim prison in southern Tripoli. (Xinhua/Li Muzi)
  • Rescue workers and local residents search for survivors after a building collapsed in old Delhi, India, Sept. 27, 2011. At least 10 people were killed and 35 injured when an old three-storey building collapsed. More than a dozen people are still feared trapped under the debris, police said. (Xinhua/Partha Sarkar)
  • A visitor has flying experience in the windmill castle of Jinshitan National Holiday resort in Dalian, northeast China's Liaoning Province, Sept. 27, 2011. The castle is a 23-meter-high building with 21 meters in diameter. The castle uses wind tunnel to make objects floating in the air. It is the first indoor stadium in China, which enables people to have flying experience. (Xinhua/Zhang Chunlei)
Hot Forum Discussion