The local stock market recovered more ground after some positive developments encouraged further bargain-hunting.
The main index jumped 204.57 points or 3.54 percent to close at 5,987.72 as Conglomerates led the rally across the board. Volume improved but was still weak at 514 million shares worth P4.59 billion as gainers beat losers 140 to 60 with 40 unchanged.
“Philippine investors continued the bargain hunting on the second trading day of October finishing in the green once more,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “Market moves were brought by the easing of Treasury yield, the 10-year Treasury note particularly fell to about 3.65 percent, down from more than 4 percent at one point last week.”
“On the local eco front, factory output catapulted to a three-month higher in Sept. on more robust demand,” Limlingan said.
Philstocks Financial Assistant Research Manager Claire Alviar said “The local bourse extended its gains, amid continued bargain hunting, boosted by the improvement in the manufacturing sector.”
“Moreover, the performance of the US markets overnight also helped to lift the sentiment at home as the US treasury yields declined,” she noted.
However, Alviar said “the net market value turnover remained low. This means that the rally was weak and may not be sustainable in the short run.”