The local stock market bounced back after plunging prior but incurred mixed reactions from investors who anticipated more hopeful outcomes from economic forecasts, and those fearing higher interest rates.

The main index rose to 81.35 points or 1.32 percent closing at 6,259.95 as all sectoral indices saw gains, led by the Mining and Oil sector advancing 240.01 points or 2.26 percent.

Volume of shares increased to 730 million worth P3.8 billion as gainers marginally exceeded losers 92 to 90 with 54 unchanged.

“Philippine shares bounced back as investors brushed aside the inflation data, and looked forward to developments ahead. In response, the government removed the price control on rice and started distributing rice to low income families,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

“Meanwhile, BMI (a Fitch Solutions Company) revised its Philippines budget deficit to 5.9 percent of GDP in 2023 (from 6.4 percent) and to narrow further to 5.1 percent in 2024, in light of the latest 2024 budget release. According to the group, the narrowing of the budget deficit also bodes well for the Philippines fiscal position which came under pressure during the pandemic,” he added.

“The local bourse bounced as investors picked up shares after the sharp decline yesterday,” said Philstocks Financial Assistant Research Manager Claire Alviar.

However, Alviar noted that “the market’s rally may not be sustainable given the weak market participation with a net value turnover of P3.70 billion only.”

“Many were still on the sidelines amid concerns over the high inflation rate, increasing the chance that the Bangko Sentral ng Pilipinas will hike interest rates,” she explained.