The local stock market bounced off last week’s losses on bargain-hunting spurred by upbeat US bourses.
The main index rose 78.95 points or 1.15 percent to close at 6,913.87 as the Services and Mining and Oil counters led the advance across the board.
Volume remained tepid though with 2.09 billion shares worth P4.84 billion changing hands as losers edged out gainers 106 to 94 with 54 unchanged.
“Philippine shares kicked off Monday on a high note with shares trading back in the 6900 range with a spillover from sentiment after a bullish Friday that saw the Dow and S&P 500 climbing to record levels anew,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local bourse bounced back as bargain hunters took opportunities out of its preceding four consecutive days of decline.”
He noted that the thin trading volume “shows that many investors are still staying out of the market amid the lingering uncertainties stemming from the COVID-19 pandemic, primarily the Delta Variant.”
AAA Equities Head of Research Chris Mangun said “The market bounced back after Bangko Sentral Governor Benjamin Diokno expressed in an interview this morning that they are currently not worried about the weakness of the peso and that they are ready to step in and tame any sharp depreciation to stabilize it.”
He added that, “The PSEi recovered above the 6,900 level led by large-cap holding and property issues although, total trading volumes, excluding block sales, remain below the average.
This tells me that there was less selling pressure and that normal buying was able to take prices significantly higher.