PSEi rebounds by 3.5% but recovery seen fragile

The local stock barometer regained some momentum on Monday as investors took advantage of cheap stocks following Friday’s bloodbath.

The Philippine Stock Exchange index (PSEi) recorded gains of 3.49 percent, or 194.77 points, to finish at 5,779.12.

The broader All Shares Index was also on the upward zone, inching up by 0.63 percent, or 20.54 points, to 3,280.80.

Only the mining and oil saw a decline among key sectors, with the financials and property getting the biggest boost.

According to Philstocks financial research manager Japhet Tantiangco, trading was “quite active” with net value turnover at P6.74 billion.

“The local market bounced back as investors hunted for bargains following last Friday’s steep decline,” he said.

“Investors also cheered for the US’ decision to cut their tariffs on selected agricultural commodities,” Tantiangco added.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., stated a similar reason for the stronger performance of the local bourse on the first trading day of the week.

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“However, there is still no prevailing catalyst to drive long-term market momentum, as uncertainty remains regarding the country’s economic growth,” Limlingan said.

As the market feared the local economy’s sluggish growth, a development in the multibillion-peso corruption scandal sparked fresh concerns.

On Friday, former Ako Bicol party-list Rep. Elizaldy Co linked President Marcos to the P100-billion budget insertion. It is expected that more information will be provided, as he stressed that he would “reveal the whole truth.”

Meanwhile, the market had 115 gainers, beating 74 decliners, while 59 were unchanged.