The local stock market on Tuesday strengthened by 41.07 points, or 0.61 percent, to close at 6,753.12.

Most sectors were green, with the Holding firms leading the gainers with a 1.66 percent increase; followed by the Services, up by 1.52 percent; and Industrial by 0.65 percent.

The Property and Bank indices, meanwhile, were in the red, dropping by 1.62 percent and 0.17 percent, respectively, the day after President Ferdinand ‘Bongbong” Marcos Jr.'s third State of the Nation Address (SoNA).

Philstocks Financial Inc. research and engagement officer Mikhail Plopenio said the local bourse gains’ were boosted by the positive spillovers from Wall Street overnight amid optimism on US second-quarter corporate results.

“Net foreign fund inflows stood at P442.93 million, which also helped in today’s climb,” he said in a Viber message.

“Philippine shares followed Wall Street's positive sentiment, with technology stocks rebounding from last week's sell-off,” Regina Capital Development Corp. head of sales, Luis Limlingan, said.

He added that investors have been adjusting their assumptions following US President Joe Biden’s recent withdrawal from his re-election campaign.

The net market value turnover was P4 billion, lower than the year-to-date average of P4.95 billion.

There were 93 decliners and 67 gainers, with 74 unchanged.

The peso closed at P58.43 from a dollar.

POGO ban effect

Pres. Marcos Jr., on his SoNA on Monday, banned all Philippine Offshore Gaming Operators (POGOs) in the country to stand against what he said as “grave abuse and disrespect to our system of laws.”

Marcos further ordered the Philippine Amusement and Gaming Corporation to wind down and cease the operations of POGOs by year-end.

According to Rizal Commercial Banking Corporation chief economist Michael Ricafort, this directive could adversely impact the sales and earnings of companies that partly rely on POGOs and their related businesses.

“The ban [has an] adverse impact in terms of reduced employment for locals in POGO operations, reduced demand for real estate rentals and leases for residential, office, and commercial properties, and even purchases of residential condos,” he said, adding that this would also reduce demand for retailers and other commercial establishments.

Ricafort explained that suppliers and other industries in the supply chain of POGOs might be affected, particularly in terms of lease income, employment agencies, and other related products and services needed by POGOs from the locals.

Transport and logistics servicing POGOs could also be affected in terms of reduced business.

“The ban or stop on POGO operations has become the official policy stance of the Economic Team over the past two years. Especially those POGOs that violate the laws or [do] not follow the laws and cause social ills locally and elsewhere with alleged illicit or criminal activities due to the intangible adverse effects of any crimes and related violations of the law,” Ricafort said.

DAILY TRIBUNE has reached out to PSE president Ramon Monzon for a comment regarding the matter but has yet to receive a response.