THE Philippine Stock Exchange’s main index closed higher on Tuesday, driven by bargain hunting and positive global and local news.
The market’s rally was supported by an extension of trade talks between the United States and China, as well as an improvement in the local banking sector’s non-performing loan (NPL) ratio.
The market was driven by bargain hunting as investors took advantage of recent days of decline, said Luis Limlingan, managing director at Regina Capital and Development Corp.
He added that market participants were “on the lookout for fresh developments that could sustain momentum,” noting that sentiment remained cautious amid lingering economic uncertainty.
The benchmark PSEi gained 0.57 percent, or 35.49 points, to close at 6,289.85. The broader All Shares also rose, gaining 0.43 percent to 3,751.27.
Japhet Tantiangco, research manager at Philstocks Financial Inc., noted that bargain hunting followed three straight days of market declines.
“The local bourse also joined many of its regional peers in cheering the extended tariff truce between the US and China,” he said.
“Finally, the prospects of two more policy rate cuts from the BSP for this year helped in lifting sentiment,” Tantiangco added.
Foreign funds were net buyers of shares, with a net inflow of P239.51 million.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., added that market sentiment also got a boost from the banking sector’s improved NPL ratio, which “slightly improved for the second straight month to 3.34 percent, the lowest in three months.”
Gainers outnumbered losers 105 to 84, with 53 stocks remaining unchanged. Total trade value reached P13.73 billion.
