The benchmark PSEi on Tuesday bounced back to the 7,500 level, gaining more than 200 points and helped by the optimism from the China state visit of President Rodrigo Duterte.
The August remittances data, and the Moody’s investment grade rating also helped encourage bargain hunting.
The PSEi gained 2.89 percent or 212.94 points at 7,571.15, while the broader All Shares rose by 2.13 percent or 92.81 points at 4,460.38.
“It’s bargain hunting. Investors took advantage of beaten down stocks since our market was down about 10 percent from the high brought about by the sell-off in the past few weeks,” Lexter Azurin, assistant vice president and research head of Unicapital Securities Inc., said in a text message.
“The sentiment is still weak from foreign investors since we still recorded a net sell today of P71 million,” he added.
“The Fed seems to be mixed also with regards to the timing of the rate hike, while the visit of the president to China may also boost ties with them,” he added.
On Tuesday, reports noted a “restoration of trust” from China to the Philippines, with expectations of stronger economic and trade ties between the two nations.
Victor Immanuel Felix, equity analyst at AB Capital Securities Inc., noted Moody’s Investor Service has reaffirmed “the country’s investment grade rating, citing robust fundamentals and high consumption.
“Also, dovish speech of [Federal Reserve chair] Janet Yellen last Friday diminished the prospects of a rate hike in the November meeting,” Felix said.
For his part, RCBC Securities Inc.’s Anton Alfonso said “the strong growth of OFW remittances in August” kept the market in positive territory.
On Monday, the central bank reported OFW remittances in August grew by 16.3 percent year-on-year by $2.319 billion, while the January to August figures increased by 4.6 percent at o $17.642 billion.
The sectoral counters were led by a 3.35 percent surge in holding firms. Metro Pacific Investments Corp. was the sole decliner among the actively traded shares. Ayala Land Inc., Universal Robina Corp., BDO Unibank Inc., SM Investments Corp., SM Prime Holdings Inc., Metropolitan Bank and Trust Company, PLDT Inc., Ayala Corp., and JG Summit Holdings Inc. registered substantial gains.
More than 1.35 billion shares were traded, valued at P8.35 billion. Gainers outnumbered losers, 123 versus 68, while 35 issues traded unchanged.
On Monday, the PSEi declined by 0.42 percent or 31.09 points at 7,358.21, while the All Shares decreased by 0.80 percent or 35.12 points at 4,367.57.