Philippine equities bounced back in Tuesday’s trade, recovering from Monday’s slide as investors snapped up bargains and took positions for the release later this week of key economic data and the outcome of a central bank policy meeting.
The benchmark Philippine Stock Exchange index closed with a 1.15 percent gain, or 86.79 points at 7,627.96, while the broader All Shares index climbed 1.09 percent or 46.94 points to 4,355.72.
Astro del Castillo, managing director at First Grade Finance Inc., said the PSEi was underpinned by bargain-hunting.
“The rally is only a bounce-back from the decline the day before. Investors saw some bargains, despite news of the government still underspending,” del Castillo said, referring to reports on Monday of the widening of the government budget surplus in May due to weak public spending.
Data from the Department of Finance showed that government expenditure stood at P175.2 billion in May, against revenues of P242.5 billion, leading to a surplus of P67.3 billion—an increase of 472 percent from P11.8 billion a year earlier.
Del Castillo said news from Greece and China had little impact on the local market, with investors just keeping themselves informed of the developments overseas, while keeping a positive stance despite local bad news.
“I think the market will consolidate between the 7,400 and 7,600 levels in the next few days. Investors will also monitor economic data set to be released this week,” he said.
Due out this week are the banks’ non-performing loans for April on Wednesday, the result of the central bank monetary policy meeting on Thursday, and second-quarter inflation figures and May imports on Friday.
Gainers included SM Prime Holdings Inc., BDO Unibank Inc. and Ayala Land Inc..
Trade volume reached 2.92 billion, valued at P6.6 billion. Advancers outnumbered decliners 99 to 75, while 43 issues remained unchanged.
On Monday, the PSEi dropped 1 percent or 75.96 points to 7,541.17, while the wider All Shares index fell 0.85 percent or 36.78 points to 4,308.78.