The local stock market regained the previous day’s losses amid guarded optimism over the COVID situation.
The main index rose 46.49 points or 0.67 percent to close at 6,970.51 with gains led by the Services and Mining and Oil counters while the Financials sector was the only one that retreated.
Volume remained thin at 864.83 million shares worth P4.88 billion as gainers outnumbered losers 100 to 90 with 54 unchanged.
“Foreign investors still concentrated on Philippine shares as US equities extended their losing streak for the fourth consecutive trading day as the investors digested the jobs data,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “Locally, the preliminary data from the PSA showed that the July trade deficit ballooned to $3.29 billion, driven by the faster growth in the import bill.“
Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “Today’s rise is seen to reflect investors’ hopes that the guidelines of the more relaxed social restrictions with granular lockdowns for the National Capital Region will be settled and implemented soon.”
However, he noted that the thin volume “shows that many are still staying out of the market due to the lingering uncertainties on our COVID-19 situation.”
AAA Equities Head of Research Chris Mangun said “The PSEi advanced as investors and fund managers continue to hold on to their positions despite several risk factors.”
He explained that, “The steady pace of inoculation and the decline in the fatality rate of COVID-19 may have drawn some optimism despite the deferral on the easing of restrictions and the spike in inflation.”