The Philippine Stock Exchange index, the local stock barometer, surpassed the 6,700-level benchmark on Monday after it clocked in at 6,715.75, up by 109.75 or 1.66 percent driven by positive spillover from the United States market.
Despite the gains in the bourse, Philstocks Financial Inc. assistant manager for research and online engagement Claire Alviar pointed out that Monday's trading featured a "weak rally."
Upon closing, market value turnover only reached P3.94 billion because investors are waiting for the inflation rate in the US, which may likely influence the decision of the Bangko Sentral ng Pilipinas at their upcoming meeting this September.
Smaller rate hikes seen
Luis Limlingan, head of sales at Regina Capital Development Corp., on the other hand, noted that investors "had been looking for signs that the size of future rate hikes might be smaller as inflation cools off."
"US Federal Reserve chairperson Jerome Powell last week reiterated that he is 'strongly committed' to bringing down inflation. Meanwhile, the OFW cash remittances for July are expected to be out within the week," he added.
Except for Miners, which declined by 0.04 percent, all sectors were in the green with Holdings, leading the gainers after it advanced by 2.03 percent.
On Monday, oil prices trended lower after energy markets whiplashed last week. The prices have been weighed down by rising interest rates and the potential curbed demand due to virus lockdowns in China. US West Texas Intermediate fell 0.29 percent to $86.54 per barrel.