The local stock market gained further as gains overseas prompted some investors to pick up bargains.
The main index rose 51.18 points or 0.80 percent to close at 6,446.35 although the Industrial and Mining and Oil counters retreated.
Volume dropped to 2.3 billion shares worth P5.04 billion as gainer led losers 125 to 76 with 52 steady.
“Philippine shares rose as investors bargain hunted for stocks that may have been the result of panic selling, while others such as PGOLD were bought up in anticipation of an uptick in demand,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that gains were also due to “positive sentiment spillover from regional markets led by high-growth tech stocks as treasury yields retreated.”
“The local market rose on the back of bargain hunting. Investors took opportunities out of the local bourse’s preceding two straight days of decline,” said Philstocks Financial Senior Analyst Japhet Tantiangco.
He said though that trading was anemic with volume far below the year-to-date average of P10.05 billion. “This shows that many investors are staying on the sidelines amid the uncertainties on the economy caused by our pandemic situation,” he added.
AAA Equities Head of Research Chris Mangun said “The PSEi bounced back and ended slightly higher as panic selling subsided. Gains were led by blue chip property and banking issues.”
He noted that, “It was mainly a technical bounce after days of massive decline.”
Mangun added that, “Fears of surging COVID-19 cases which may lead to an out-of-control situation persist; however, clarity on economic and business restrictions as well as progress on the inoculation may have had a positive effect on the general investor sentiment.”