PSEi posts strong gains, snaps 3-day skid amid global rebound

Taking its cue from the rebound in global markets, Philippine share prices snapped a huge three-day decline and posted significant gains on Wednesday. The benchmark 30-company Philippine Stock Exchange index soared 133.11 points or 3.20 percent to 4,290.14 while the all shares climbed 81.90 points or 2.82 percent to 2,988.08. “The Philippine market rebounded after Asian and the US markets cheered the US Federal Reserve’s move to keep a lid on key interest rates. This is a positive signal for all markets and should bode well in terms of investor confidence," PSE President and Chief Executive Officer Hans B. Sicat said. Market breadth was positive with 149 gainers dominating 17 losers and 17 stocks that closed unchanged. All six sub-indices closed in the green, led by Mining & Oil's 6.26-percent jump. Volume traded reached 7.81 billion shares valued at P7.51 billion. Overnight, US markets bounced with the Dow rising 3.98 percent and Nasdaq adding 5.29 percent. As of mid-trade in Asia, except for Singapore's, all other main indices were trading in the green, led by the over 3-percent climb of Hong Kong's Hang Seng. “Basically, this is a relief rally and technically, we’re ripe for a bounce. The market’s been oversold that’s why there’s bargain hunting too," said Astro del Castillo, managing director at First Grade Holdings Inc. Del Castillo, however, warned that volatility will remain for at least a month as questions about the the health of the US economy linger. “Having said that, we are not in a bear market yet as we remain confident in the domestic market," he said. In the local bourse, all five most active stocks for the day advanced. Lepanto Consolidated Mining Co., the day’s top traded, leaped P0.08 or 6.67 percent to P1.28. Zeus Holdings Inc. gained P0.03 or 2.59 percent at P1.19. Philex Mining Corp. added P2.10 or 8.40 percent at P27.10. Holding firm Ayala Corp. jumped P6 or 1.99 percent to P308. Alternative power producer Energy Development Corp. rose P0.07 or 1.14 percent to P6.22. --CMA/OMG, GMA News