Market rebounds as Wall St rallies

MANILA, Philippines —  The stock market made a strong rebound yesterday, powered by a solid rally on Wall Street.

The Philippine Stock Exchange index rebounded from the previous day’s decline, surging by 1.85 percent or 119.89 points to close at 6,609.24.

Also enjoying a huge boost was the All Shares index which zoomed by 1.30 percent or 45.46 points to settle at 3,555.68.

“The local index rose strongly with Asian markets on the back of a record rally in US stocks, fueled by bets that US June inflation data will reinforce expectations of Federal Reserve interest rate cuts starting in September,” China Bank Capital Corp. managing director Juan Paolo Colet said.

Colet said trading was also buoyed by broadening consensus that the Bangko Sentral ng Pilipinas would commence monetary policy easing in August.

“With the PSEi closing above 6,600 on healthy volume, we may see trading momentum and positive sentiment lift the market toward the 6,700 resistance in the coming sessions,” he said.

On top of the positive spillovers from Wall Street’s record-high performances overnight, Philstocks Financial research and engagement officer Mikhail Plopenio said the peso’s improved performance against the  dollar was also cheered by investors.

“Adding to the positive factors was the inflow of foreign funds as foreigners were net buyers amounting to P69.30 million,” he said.

Plopenio said yesterday’s net market value turnover at P5.50 billion was higher than the year-to-date average of P4.96 billion.

All counters were in the green, increasing by more than one percent each.

Leading the charge was the holding firms index which soared by 2.35 percent, followed by industrial which grew by 1.85 percent.

Advancers pounded decliners, 117 to 68, while 60 issues were unchanged.