Market recovers strong amid low trade volume
S&P Global Philippine Manufacturing PMI stood at 52.9, better than August’s 51.2
Daily TribuneS&P Global Philippine Manufacturing PMI stood at 52.9, better than August’s 51.2
The Philippine Stock Exchange index extended its gains after it surged by 204.57 points to 5,987.72, 3.54 percent higher than Monday's close.
Philstocks Financial Inc. assistant manager for research and online engagement Claire Alviar said the rally was driven by continued bargain hunting and boosted by the improvement in the manufacturing sector.
"Last month, the S&P Global Philippine Manufacturing PMI stood at 52.9, better than August's 51.2. Moreover, the performance of the US markets overnight also helped to lift the sentiment at home as the US treasury yields declined," Alviar said.
Regina Capital Development Corp. managing director Luis Limlingan said sentiment improved after factory output data catapulted to a three-month high in September on the back of more robust demand.
Oil jumped yesterday as OPEC+ continues to weigh reducing output by more than 1 million barrels per day to buttress prices with what would be its largest cut since 2020. Brent crude futures settled at $88.86 per barrel (+4.37 percent), while the US West Texas Intermediate crude futures closed at $83.63/bbl (+5.2 percent).
Turnover remains low
On Tuesday, the net market value turnover remained low at P4.53 billion, which Alviar said showed the rally was "weak and may not be sustainable in the short run."
"Since the market remains below the 6,000 level, we still see support at 5,700 while the resistance is pegged at 6,000 to 6,100," Alviar said.
All sectors gained this session, led by the Holdings and Properties, advancing 4.73 percent and 4.19 percent, respectively.
Among index members, Globe Telecom, Inc. had the biggest gain of 7.61 percent while Wilcon Depot, Inc. dropped the most by 5.88 percent.
