The local bourse rebounded on Tuesday amid positive cues from the United States market and month-end window dressing.
The benchmark Philippine Stock Exchange Index (PSEi) improved by 1.68 percent, or 102.54 points, to finish at its intraday high of 6,207.72 while wider All Shares rose 1.34 percent, or 48.31 points, to 3,645.17.
In a market comment, Philstocks Financial Inc. said the local bourse “rallied together with its regional peers amid the positive cues from Wall Street and China’s above than expected official manufacturing purchasing manager’s index.”
Philstocks Financial Inc. research associate Claire Alviar, meanwhile, attributed Tuesday’s result to a technical rebound and month-end window dressing, along with the positive cues from the US markets.
“The bourse rebounded from 50-day exponential moving average after the market fell on that line yesterday, that triggers bargain hunting today (and) was coupled with the month-end window dressing,” Alviar explained.
She added that the local market also followed the overnight bounce of US stocks.
Wall Street rallied overnight as Dow Jones, S&P 500 and Nasdaq gained 2.32 percent, 1.47 percent and 1.2 percent, respectively.
Alviar said that China’s June manufacturing activity coming in at 50.9 also spurred optimism in Asia.
Most Asian markets were in the green as Tokyo climbed 1.33 percent, Shanghai improved by 0.78 percent, Hong Kong rose 0.52 percent, Seoul gained 0.71 percent, Jakarta inched up by 0.07 percent, Singapore increased by 0.78 percent and Thailand was up by 1.24 percent, while Ho Chi Minh shed 0.51 percent.
Despite the climb, Alviar said that investor participation remained weak as investors await the decision of the government on the new quarantine measures for July.
Total volume turnover was at 857.27 million shares valued at P6.47 billion on Tuesday, which Alviar said was lower than the month-to-date’s average of P8.14 billion.
All local sectors emerged victorious, spearheaded by financials at 2.43 percent.
Gainers edged out losers at 118 to 70, while 54 securities were unchanged.