The local bourse rebounded anew on Thursday after global oil prices recovered, with analysts warning that continued volatility should be expected.
The benchmark Philippine Stock Exchange Index (PSEi) rose by 2.01 percent or 131.35 points to close at 6,652.83, while the wider All Shares increased by 1.86 percent or 69.78 points to finish at 3,813.75.
“Oil prices … [have been]correlated to the PSEi for several days now. Thus, an increase in prices in this commodity improved our market … in the same way that the decrease in oil prices weakens our bourse’s performance,” said Alexander Adrian Tiu, senior analyst at AB Capital Securities Inc.
He noted that stronger oil prices particularly benefited the mining and oil sub-index, which led all sub-indices with a 5.87-percent gain.
“Locally speaking, the increase in oil prices has a positive impact on us since we have OFWs (overseas Filipino workers) in the Middle East, whose earnings are mainly pegged on this commodity,” Tiu added.
Nisha Alicer, head of research at DA Market Securities Inc., agreed that external factors were dictating the local market’s direction and warned that a decline was possible given continued volatility.
“So we are closely monitoring for bottoming signals as well as impact of stimulus by central banks around the world,” Alicer said.
Total value turnover reached P6.708 billion on Thursday, with winners outnumbering losers, 134 to 42, while 31 issued remained the same.