The Philippine Stock Exchange (PSEi) extended gains on Tuesday, rising 204.57 points, or 3.54 percent, to close at 5,987.72 amid continued bargain hunting, supported by an improvement in the manufacturing sector and an easing of 10-year Treasuries. to about 3.583 percent, down from more than 4 percent last week.
“PSEi corrected higher for the second day in a row, in line with the sharp bullish correction in US stock markets of 2.3 percent – 2.6 percent despite slower-than-expected ISM manufacturing data to the lowest in more than two years,” Michael Rycafort, chief economist said At Rizal Commercial Banking Corp. “Moreover, a healthy downward correction in US Treasury yields and the US dollar against major global currencies also triggered a rush of relief in US and local stock markets as the benchmark 10-year US Treasury yield fell to a one-week low now at 3.583 in cent, down from the immediate rise of 4.01 percent recorded on September 28, 2022.”
The Philippines S&P Global Manufacturing PMI for September stood at 52.90, and the overnight performance of US markets helped lift sentiment at home as well.
As for market catalysts, the Managing Director of Regina Capital Development Corp. Lewis Lemlingan notes that Wall Street will be watching the new data from Wednesday’s Job Opportunity and Employment Turnover Survey (Manila time), which is run by the Bureau of Labor Statistics.
However, Claire Alviar, research assistant at Philstocks Financial Inc. The net market turnover on Tuesday remained low at 4.53 billion pesos.
“This means that the rally was weak and may not be sustainable in the short term. As the market is still below the 6000 level, we still see support at 5700 while the resistance holds at 6000-6100,” Alvear added.
All sectors rose in the session, led by holding companies and real estate, up 4.73 percent and 4.19 percent, respectively.
Advance shares won against decliners, 140 against 60, while 40 securities remained unchanged.
Among the members of the index, Globe Telecom had the largest gain of 7.61 percent while Wilcon Depot Inc.’s stock fell. by 5.88 percent.