Local equities advanced, pushing the benchmark index back above the key 6,400 threshold, as the temporary breather in global energy markets and anticipation of strong second-quarter earnings lured bargain hunters back to the table.

The Philippine Stock Exchange index (PSEi) climbed 78.96 points, or 1.25 percent, to close at 6,404.11 on Friday, July 17. The property sector paced the advance as developers benefited from improving macroeconomic sentiment, while mining shares emerged as the sole decliner among the exchange’s sub-indices.

Despite the broad-based rally, overall market participation remained subdued. Trading volume fell to 902 million shares valued at ₱6.18 billion. Market breadth was positive, with 103 advancing stocks outpacing 85 decliners, while 52 issues closed unchanged.

“The local bourse stayed in positive territory as investor sentiment remained upbeat amid a constructive outlook for the Philippine economy,” said Luis Limlingan, managing director at Regina Capital Development Corp.

Domestic economic optimism is being fueled by projections that local factory activity will continue to expand in the coming months. Furthermore, resilient cash remittances sent home by overseas Filipino workers—historically a primary driver of domestic retail activity—are expected to keep providing a reliable cushion for private consumption and overall economic growth.

The rally was also fueled by selective buying as investors began adjusting their portfolios ahead of the mid-year corporate reporting season.

“The local market rose on the back of bargain hunting, with some investors taking positions in hopes of satisfactory second-quarter corporate results,” said Japhet Tantiangco, research manager at Philstocks Financial Inc.

However, Tantiangco cautioned that overall trading remains anemic as global macroeconomic headwinds and intensifying geopolitical tensions in the Middle East weigh on risk appetite. Even with these overhangs, foreign fund managers bucked the cautious trend to remain net buyers on the day.

Further supporting the upward momentum was a slight reprieve in the energy markets, which has softened localized inflation worries.

The PSEi’s three-day winning streak directly coincided with a back-to-back decline in international crude benchmarks, according to Michael Ricafort, chief economist at Rizal Commercial Banking Corp.