News that creditors approved a negotiation over a bailout plan for Greece and a rebound in Chinese equities relieved market worries and prompted a new round of buying in stock markets on Monday.
The PSEi rose 103.74 points or 1.40 percent to 7,496.33, while the wider All Shares gained 41.57 points or 0.98 percent to 4,268.78.
News of an approved Greece bailout loan program has perked up buying in the market, which is under oversold conditions,” said Harry Liu, Summit Securities Inc. president.
Liu noted that international markets also closed higher, with US markets gaining momentum on Friday when the Dow Jones rose by 1.21 percent or 211.79 points to 17,760.41.
Jonathan Ravelas, BDO chief market strategist, said the “recovery in the Chinese stock market as well as the possible Greece resolution helped buoy the market closer to 7,500.”
A 30 percent decline in Chinese stocks since mid-June instigated fears of a collapse of China’s market amid a slowing economy.
“Let’s see if the market can sustain a rise to test 8,000. Otherwise, it could cause profit-taking and a retest of the 7,200 levels,” Ravelas noted.
All sub-sectors closed in positive territory, led by the 2.63 percent increase in the property index.
Trading volume reached 6.75 billion shares, valued at P4.76 billion. Gainers outnumbered losers, 107 to 64, while 37 issues were unchanged.