The Philippine Stock Exchange (PSE) rallied for the third day, up 53.03 points to come in at 6,483.11.
Claire Alviar, research associate at Philstocks Financial Inc., and Rizal Commercial Banking Corp. Chief economist Michael said this was due to the rebound in US markets overnight.
“Equities in the US rose overnight as the outlook on the US economy improved following the strong ISM Non-Manufacturing Purchasing Managers Index,” said Alviar.
Bargain hunting was also prevalent as investors chose heavily beaten stocks ahead of the latest Philippine Consumer Price Index, coupled with mounting US-China tensions over Taiwan in the background.
The excellent second-quarter earnings of PSE-listed companies also helped to bolster market sentiment, with blue chip companies all reporting higher revenues and net profit as pandemic restrictions were lifted.
In the United States, Regina Capital Development Corp. Chief Executive Luis Limlingan and Ricafort noted that comments from St. Louis Federal Reserve (Fed) Chairman James Bullard said he does not think the United States is in a recession, citing job earnings and low unemployment. He wants the Fed rate to end in 2022 between 3.75% and 4% to counteract the highest US inflation of the past four decades. This was because major US markets remained favorable and bond market yields remained stable despite two consecutive rate hikes of 75bps (basis points).
Limlingan noted that oil prices were slipping, with losses accelerating after US data showed that crude oil and gasoline inventories rose unexpectedly last week and as OPEC + said it would increase its production target of oil of 100,000 barrels per day. Brent crude futures fell $ 3.76, or 3.7 percent, to $ 96.78 a barrel. US West Texas Intermediate crude futures fell $ 3.76, or 4 percent, to $ 90.66.
Net turnover of market value was £ 5.13 billion, with a total volume of 591,256,964 shares.
Net purchases were recorded at P315.55 million due to the continued bargain hunt of foreign investors.
All sectors were green with services earning 1.34%.
Advancers outperformed those in decline, from 98 to 78, while 49 stocks remained unchanged.