Shares rise on bargain-hunting

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    The Philippine Stock Exchange index (PSEi) rose 59.58 points or b 1.04 percent to 5,775.50.

    The broader all shares index was up 28.15 points or by 0.84 percent to 3,426.97.
    Gainers edged losers 136 to 52 with 46 stocks unchanged. Trading turnover reached P5.74 billion.

    The peso closed at 49.095 to the dollar, unchanged from Monday.

    The currency opened at 49.12 and hit a high of 49.095 and a low of 49.14. Trading turnover reached $470.35 million.

    “Investors became bargain- hunters in the PSEi following the huge sell-off yesterday as many brace for a big week of corporate earnings, boosted by positive manufacturing data out of the Euro zone, and leads from the US technology sector,” said Luis Limlingan, managing director at Regina Capital Development Corp.

    Reuters reported that markets in Indonesia and the Philippines recovered more than 1 percent, as strong US manufacturing data and gains on Wall Street countered worries over surging coronavirus cases at home.

    A number of analysts have said the second round of restrictions will spell more economic pain than the first, given that corporate cash reserves have now dried up and many citizens are already out of work.

    Jeffrey Halley, senior market analyst for Asia Pacific at OANDA said that Monday’s US PMI survey had propped up expectations that a modest global recovery was on the way. But he reckoned the gains in Philippines and Indonesia could be bargain hunting, and could quickly evaporate.

    “The flows look very much like fast money and it wouldn’t take much to send them scurrying for the exit doors just as quickly,” he said.

    The dollar was again weak, helping most Asian currencies to gain ground, with the Thai baht irming 0.4 percent to 31.1 ahead of a central bank monetary policy meeting on Wednesday.

    The Bank of Thailand is expected to stand pat on rates, having cut three times this year to an all-time low of 0.50 percent.

    “We consider the BoT’s rate cut cycle has bottomed (out). An on-hold policy rate at the current level for the foreseeable future remains our baseline through 2021, at the least,” ING said in a note.

    The Indonesian rupiah weakened 0.3 percent ahead of the release on Wednesday of second quarter gross domestic product (GDP) data that is expected to show the economy’s biggest contraction in more than two decades.

    Combined with weak July inflation data released on Monday, the data is expected to fuel bets on another central bank rate cut.

    Most actively traded Universal Robina Corp. was up P5.50 to P130.50. SM Prime Holdings Inc. was down P0.10 to P28.45. SM Investments Corp. was up P5 to P865. PLDT Inc. was up P20 to P1,337. Emperador Inc. was up P0.01 to P9.07. Ayala Land Inc. was up P0.90 to P32.20. BDO Unibank Inc. was up P2.15 to P87.15. Ayala Corp. was up P5 to P705. Globe up P56 to P2,070. Bank of the Philippine Islands was down P0.20 to P64.50.