The local stock market finally made a stronger bounce as funds picked up cheaper blue chips late in the session. 

The main index rose by 74.18 points or 1.17 percent to close at 6,410.09 as the Mining and Oil sector led the advance although Banks lagged behind. Volume dropped to 385 million shares worth P3.86 billion as gainers edged out losers 92 to 89 with 45 unchanged. 

“Funds bought up into the local market as investors sought refuge from the geopolitical concerns from China's woes,” said Regina Capital Development Corporation Managing Director Luis Limlingan. 

He added that, “locally, shares were bought up on bargain hunting, supported by the latest remittances print. This was reported to have reached a 6-month high in June at $2.81 billion (up 2.1 percent year on year).”

Philstocks Financial Assistant Research Manager Claire Alviar said, “bargain hunting continued in the local bourse this session as sentiment received an added boost from the first half’s 2.9 percent growth in cash remittances, even though its slightly missed the government’s target of 3.0 percent growth for the year.”

China Bank Capital Corporation Managing Director Juan Paolo Colet said, “market-on-close buying of select blue chips lifted the index as investors positioned ahead of the BSP policy rate decision.”

He noted that, “the local market bucked the negative performance of most Asian stock indices and brushed aside jitters on the Chinese economy and the direction of US monetary policy. The PSEi’s rise is most likely a technical rebound and we remain wary of selloffs.”