The local stock market rose as investors followed through on the previous day’s late bargain hunting.
The main index jumped 113.75 points or 1.76 percent to close at 6,560.06 with miners and banks leading the charge.
Volume improved but was still low at 799.68 million shares worth P4.89 billion as gainers beat losers 126 to 57 with 54 unchanged.
“Philippine shares continued to be bought up as concerns about the delta variant took a back seat for now, as earnings from major heavyweights continued to pour in either in line or better than expected,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “Others are keeping an eye on the July inflation report, which many believe will fall below the psychological 4.0 percent mark.“
Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “Bargain hunting continued, lifting the local market up. The rise in the number of our country’s employed individuals last June helped spur optimism as this is seen to help in raising the economy’s output.”
He noted that, “Sentiment also got a boost from the strong second quarter 2021 corporate earnings that have been released so far, and the expectation that the upcoming company reports will also show good results.”
AAA Equities Head of Research Chris Mangun said “Local share prices ended higher, reversing losses in early trading. Trading volumes were also higher which tells us that investors are willing to come in at current prices, although volumes are still below the daily average of around P6 billion.”
He explained that, “Prices have become too cheap for sellers and they are choosing to hold on to positions until valuations are better. The diminished selling pressure has kept prices from going lower, which is an encouraging sign for investors on the sidelines to come in and take advantage by buying the cheap shares.”
“Fears of an uncontrollable COVID-19 outbreak were calmed by the increasingly tighter restrictions that the government is slowly implementing. This is inline with the notion that the temporary imposition of tighter restrictions is positive on the investor sentiment as the long-term benefits will outweigh the short-term economic weakness,” said Mangun.