PHL shares bounce back as North Korea tensions ease

Philippine shares bounced back on Monday, buoyed by easing tensions overseas as North Korean leader Kim Jong-Un decided to host a party instead of launching a new nuclear missile over the weekend.

The main PSEi climbed 26.56 points or 0.33 percent to 8,049.31. The broader All Shares gained 15.31 points or 0.32 percent to 4,778.61.

According to a report by Reuters, there was less risk aversion on Monday as North Korea did not launch any nuclear missiles.

"Definitely, that was one of the concerns. The market reacted in such a way that the fear of that problem growing bigger has been settled," Harry G. Liu, president of Summit Securities Inc., said.

Liu said the market is just expected to continue moving sideways.

"We're just waiting for something more substantial to break it upward, with people looking at the end of the ghost month next week," Liu said.

The ghost month — scheduled on August 22 to September 19 this year — is supposedly a dangerous time to make important decisions as the gates of hell are said to be open, and the spirits of the underworld are free to roam the face of the earth.

"The market is still going on a sideways. Volume very thin, waiting for something substantial in any economic fundamentals," Jeffrey Lucero, equity research analyst at RCBC Securities Inc., said in a separate text message.

Foreign funds bought P3.193 billion of shares during the session and sold P3.425 billion for a net selling position of P232.006 million.

More than 899.173 million shares, valued at P6.098 billion, changed hands. Winners led losers, 110 to 87, and 50 issues were unchanged. — VDS, GMA News