Stocks down but analysts say market showing some spunk
09/30/2008 | 11:16 AM
MANILA, Philippines- Philippine share prices as of mid-session Tuesday continued to trade lower following the US House's move to thumb down a rescue package to aid troubled financial institutions.
Analysts, however, noted that the panic in the opening of the session has been slightly dissipated as the market staged a minor rally, recovering from more than a hundred-point decline to trim down its losses.
As of 10:44 a.m., the 30-company Philippine Stock Exchange index dropped 73.18 points or 2.8064 percent to 2,534.40 while the all-share index slumped 45.66 points or 2.7701 percent to 1,602.64.
In the opening minutes of the session, the bellweather PSEi slid 155.81 points or 5.9753 percent to 2,451.77 while the all-share index dipped 76.65 points or 4.6502 percent to 1,5712.65.
The steep drop came after Wall Street dove by nearly 800 points as American congressmen rejected the $700-billion bailout plan of the Bush administration.
Jason Lagrimas, analyst at online stockbrokerage firm 2TradeAsia, said there were bargains that were being picked up by investors.
"Everything hinges on how the US will work out a new plan after the US House rejected the $700-billion bailout plan. The world is now looking how US Treasury Secretary Henry Paulson will work with the US congress for the approval of the new plan," he said.
Peter Lee, IGC Securities analyst, said the slight rebound in the local bourse showed its "resilience" as he noted that other markets in the region also showed some spunk in the light of Wall Street's bloodbath Monday.
"I think this performance will reverse investors' sentiment from fear to that of confidence. A lot of investors were waiting to buy. Asian markets are also only down by 3 percent even as they opened lower than that," he said. GMANews.TV
Analysts, however, noted that the panic in the opening of the session has been slightly dissipated as the market staged a minor rally, recovering from more than a hundred-point decline to trim down its losses.
As of 10:44 a.m., the 30-company Philippine Stock Exchange index dropped 73.18 points or 2.8064 percent to 2,534.40 while the all-share index slumped 45.66 points or 2.7701 percent to 1,602.64.
In the opening minutes of the session, the bellweather PSEi slid 155.81 points or 5.9753 percent to 2,451.77 while the all-share index dipped 76.65 points or 4.6502 percent to 1,5712.65.
The steep drop came after Wall Street dove by nearly 800 points as American congressmen rejected the $700-billion bailout plan of the Bush administration.
Jason Lagrimas, analyst at online stockbrokerage firm 2TradeAsia, said there were bargains that were being picked up by investors.
"Everything hinges on how the US will work out a new plan after the US House rejected the $700-billion bailout plan. The world is now looking how US Treasury Secretary Henry Paulson will work with the US congress for the approval of the new plan," he said.
Peter Lee, IGC Securities analyst, said the slight rebound in the local bourse showed its "resilience" as he noted that other markets in the region also showed some spunk in the light of Wall Street's bloodbath Monday.
"I think this performance will reverse investors' sentiment from fear to that of confidence. A lot of investors were waiting to buy. Asian markets are also only down by 3 percent even as they opened lower than that," he said. GMANews.TV
