The local stock market rose as it continues to gather strength from gains in US bourses.
The main index was 48 points or 0.70 percent higher at 6,918.41 as sectoral indices moved higher across the board. The Property counter recovered and led the day’s advance.
Volume improved slightly to 4.2 billion shares worth P6.14 billion as gainers outpaced losers 116 to 94 with 52 unchanged.
“Philippine shares climbed anew as Powell reiterated that the inflation pressures are only transitory, and the economy is gradually working its way out of the pandemic,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, Powell maintained that the Fed would be patient in scaling back the current monetary policy due to the "unusual setting of reopening the economy.”
Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local market extended its climb as it took cues from Wall Street’s performance overnight with the NASDAQ reaching a new record high closing.”
He noted that, “Investors were also cheered by the government’s fiscal performance as of May 2021 with tax revenues surging 27.1 percent year-on-year in the first five months, reflecting the improving economic conditions compared to the same period last year.”
AAA Equities Head of Research Chris said “The PSEi advanced led by substantial gains in large-cap property firms, port-operator ICT, and fast-food giant JFC. The performance of these issues is consistent with the ‘economy reopening’ theme that has been driving the market higher.”
He observed though that, “Trading volumes remain below average and declined further which may be a sign that most investors are on the sidelines, looking forward to the results of the central banks meetings which will be out by the end of the week.”