Philippine shares rebounded from a two-and-a-half year-low as market fundamentals kicked in and investors hunted for bargains.
The market managed to rebound on a strong note alongside Asian equity markets following Monday’s 4.3 percent drop on account of US President Donald Trump’s trade war escalation.
“Bargain-hunting activities remained high throughout the day due to a reprieve from selling pressure despite negative news still dominating the headlines,” Stock brokerage SB Equities Inc. said.
Investors ignored the overnight drop on Wall Street as US President Donald Trump doubled down on America’s reciprocal tariffs against its trading partners, it added.
The PSEi gained 183.49 points or 3.15 percent to 6,006.34 when the session closed. The broader All Shares rose 86.03 points or 2.46 percent to 3,582.80.
Gainers outnumbered decliners 127 to 75, with 60 stocks closing unchanged. Trading value topped P6.31 billion.
Japhet Tantiangco, senior research analyst at Philstocks Financial Inc., said investors hunted for bargains following three straight trading days of declines.
Investors pinned their hopes on a likely interest rate cut by the Bangko Sentral ng Pilipinas when its policy-setting Monetary Board meets on April 10, helping the market overcome the downtrend.
“All sectors closed in positive territory, with services gaining the most, up 5.51 percent,” Tantiangco said.
Tuesday’s rebound coincided with the listing of fuel distributor Top Line Business Development Corp. on the PSE.
The company raised P732.6 million from its initial public offering (IPO) of 2.36 billion shares at P0.31 apiece. The IPO consisted of 2.15 billion primary shares and 214.84 million secondary shares as its oversubscription option.
The share sale comprised 22 percent of the company’s paid and subscribed capital post-IPO.
Top Line said in a statement the share sale received strong interest from institutional investors, both local and foreign, as well as retail investors.
Top Line’s IPO is the first this year. It is also the first Cebu-based company to successfully raise funds through an IPO in almost a decade.
“The ceremonial ringing of the bell represents not only a milestone for Top Line but also for the Cebu business community,” the company said.
Most actively traded BDO Unibank Inc. rose P9 to P158. International Container Terminal Services Inc. gained P28 to P348. Ayala Land Inc. was steady at P22.50. Jollibee Foods Corp. advanced P14.20 to P217.20. SM Investments Corp. increased P4 to P750. Bank of the Philippine Islands rose P4 to P131.50. PLDT Inc. gained P79 to P1,279. Metropolitan Bank and Trust Co. climbed P2.50 to P70. SM Prime Holdings Inc. advanced P0.10 to P22.50. Manila Electric Co. added P22 to P550. ~0~
