THE Philippine Stock Exchange (PSE) rallied for the third day, up by 53.03 points to settle at 6,483.11.
Philstocks Financial Inc. research associate Claire Alviar and Rizal Commercial Banking Corp. chief economist Michael said this is due to the bounce back of US markets overnight.
“Stocks in the US gained overnight as the view on the US economy improved following the strong ISM nonmanufacturing purchasing managers’ index,” Alviar said.
Bargain hunting was also prevalent as investors picked heavily beaten stocks ahead of the latest Philippine consumer price index, along with rising US-China tensions over Taiwan in the background.
Excellent second-quarter earnings by listed companies on the PSE also helped boost market sentiment, with blue chip companies all reporting increased revenues and net income as pandemic restrictions were lifted.
In the United States, Regina Capital Development Corp. Managing Director Luis Limlingan and Ricafort noted that St. Louis Federal Reserve (Fed) President James Bullard’s remarks stated that he doesn’t think the US is in a recession, citing job gains and low unemployment. He wants the Fed rate to end 2022 at 3.75 percent to 4 percent to counter the highest US inflation in four decades. This, as the main markets in the US remained buoyant and bond market yields remained steady despite the two consecutive 75 bps (basis points) rate hikes.
Limlingan noted that oil prices slid, with losses accelerating after US data showed crude and gasoline stockpiles unexpectedly surged last week and as OPEC+ said it would raise its oil output target by 100,000 barrels per day. Brent crude futures settled down $3.76, or 3.7 percent, at $96.78 a barrel. US West Texas Intermediate crude futures fell $3.76, or 4 percent, to $90.66.
Net market value turnover was at P5.13 billion, with total volume registering at 591,256,964 shares.
Net buying registered at P315.55 million due to foreign investors’ continued bargain hunting.
All sectors were in the green with services gaining 1.34 percent.
Advancers edged decliners, 98 to 78, while 49 securities remained unchanged.