The local stock market bounced from its sharp drop yesterday as some good news encouraged investors to pick up cheaper stocks.
The main index rose 39.66 points or 0.61 percent to close at 6,593.74 as the Property sector led the advance while the Services and Mining counters remained in the red. Volume improved a bit to 674 million shares worth P5.25 billion as losers still outnumbered gainers 99 to 88 with 48 unchanged.
“Philippine shares rebounded on easing rates and oil prices, which eclipsed the concerns about rising inflation,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “Also, the Beige Book was released yesterday. The report showed that economic activity was little changed in many regions across the U.S., and that growth outlooks remain weak.”
Philstocks Financial Research and Engagement Officer Mikhail Philippe Plopenio said “The local market climbed on the back of bargain hunting fueled by the positive spillovers from Wall Street and the further improvements in our labor market figures. Investors were cheered as the employment rate for August stood at 94.8 percent, the highest for this year."
He noted though that, “ongoing headwinds which include the peso’s depreciation and recession risks offshore kept many investors on the sidelines which resulted in weak trading for the day.”