The local stock market recovered some of the previous day’s losses after some major investors picked up bargains.

The main index rose 40.28 points or 0.59 percent to close at 6,835.41 as Holding Firms led the bounce while the Property and Services counters continued to retreat.

Volume was lower at 1.02 billion shares worth P4.37 billion as losers still outnumbered gainers at 117 to 70 with 58 unchanged.

“The PSEi closed higher as investors returned to the Philippines as US stocks pulled back after the June inflation data accelerated unexpectedly,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He noted that, “The results challenge the Fed's view that the high inflation would be temporary. “

“Locally, sentiment got a boost from the improvement in remittances and auto sales data. OFW remittances rose by 13 percent in May, the fastest in nearly five years, as the global economy's recovery picked up steam amid the pandemic,” Limlingan said .

Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “Last minute bargain hunting sent the local market higher. The rise in our country's May OFW cash remittances also helped in bringing the market to a positive close.”

AAA Equities Head of Research Chris Mangun noted that, “The market ended slightly higher in another low volume trading session which proved that yesterday's selloff was just a knee-jerk reaction to reports of a possible credit rating downgrade from global debt-watcher Fitch.”

He added that, “Growth in OFW remittances may have improved the sentiment. This was the largest growth rate for remittances going all the way back to 2016. This is also the second month in a row of double-digit percentage growth.”