The local stock market extended gains as investors continued to pick up bargains after the August inflation rate, while higher, came within target.

The main index rose by 42.21 points, or 0.69 percent, to close at 6,149.13. The services sector led the advance, although banks dipped slightly. Volume improved to 2.27 billion shares worth ₱5.97 billion, as losers outnumbered gainers—102 to 95, with 60 unchanged.

“The market ended on green for two straight days, supported by sustained buying pressure as investors continue to take advantage of relatively attractive prices,” said Regina Capital Development Corp. managing director Luis Limlingan.

He added that, “the latest inflation report looks like received positively, coming in within the Bangko Sentral ng Pilipinas’ (BSP) target range and boosting sentiment.”

Major United States (US) indices extended their highs as bond yields eased noticeably, stirring a cautious sense of optimism across sectors.

“Markets are clearly rallying beneath the surface of shifting policy expectations and positioning,” said Limlingan.

Philstocks Financial research manager Japhet Tantiangco said, “The local market extended its rise as investors continued with their bargain hunting. The Philippines’ tempered August inflation print of 1.5 percent gave the market a boost.

“The improvement in the peso’s position and the positive cues from Wall Street helped in today's trading session,” he noted.

Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said, “The Philippine Stock Exchange Composite Index (PSEi) corrected higher for the second-straight trading day after the passage of economic reform measures recently on the simplification of mining industry taxes, fair government share, and separately allowing foreigners to lease land for 99 years.”