Local shares prices rose despite the higher jobless rate as investors opted to pick up bargains.
The PSEi increased 45.80 points or 0.68 percent to close at 6,809.72 as the Property sector leading the advance while only the Mining and Oil counter weighing down the market.
Volume improved slightly to 2.37 billion shares worth P5.29 billion as gainers beat losers 110 to 93 with 49 steady.
“Shares resumed their bargain hunting once more as investors awaited more economic data releases. As of now many are reading into the latest banking data to give clues as to how much time it would take the economy to recover,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “Others monitored commodities as prices fell from its two-year highs as OPEC decided to keep its supply curbs in place and over expectations of demand recovery.”
Philstocks Financial Senior Analyst Japhet Tantiangco said “Bargain hunting primarily on property stocks lifted the local market. Foreign funds helped in Tuesday’s climb with net inflows amounting to P29.01 million.“
He noted that the low volume “implies that many investors are still staying on the sidelines due to lingering uncertainties on our COVID-19 situation and on our economy.”
AAA Equities Head of Research Chris Mangun said “The PSEi inched higher despite the disappointing jobs data as well as reports that the World Bank, yet again, reduced its economic growth forecast on the Philippines from 5.5 percent to 4.7 for the year.”
“The increase in unemployment had almost no effect on the market as this is a temporary issue and was already expected and factored into valuations,” he explained.
Mangun noted that, “Investors are still generally optimistic and are willing to hold on to positions as the economy continues to recover. Trading volumes picked up from yesterday as more second and third liners see increased volatility while blue-chips hover at their respective price levels.”