The local stock market bounced back after US lawmakers managed to resolve the debt ceiling issue.
The main index jumped 81.43 points or 1.27 percent to close at 6,512.01 Conglomerates leading the rally across the board. Volume was lower though at 1.21 billion shares worth P4.88 billion as gainers outpaced losers 108 to 64 with 47 unchanged.
“Philippine shares bounced back above 6500 as the debt ceiling concerns eased on yesterday,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “The House passed the Fiscal Responsibility Act in a 314-117 vote late Wednesday, just days before the June 5 deadline set by U.S. Treasury Secretary Janet Yellen.“
Philstocks Financial Assistant Research Manager Claire Alviar said “The local bourse gained after U.S. lawmakers passed a bill to raise the debt ceiling and cap government spending for two years, days before the default deadline.”
“Additionally, positive sentiment at home contributed to the market’s increase,” she said noting that, “The sentiment also got boosted by the improvement in the Philippines’ S&P Global Manufacturing PMI at 52.2 in May and investors also took advantage of the three consecutive days of market decline.”