The stock market gained slightly on Tuesday as investors searched for bargains again and got some much-needed lift from Wall Street’s latest rally.
The benchmark Philippine Stock Exchange index (PSEi) inched up by 0.1 percent or 6.62 points to close at 6,559.08, while the wider All Shares added 0.11 percent or 4.28 points to finish at 3,954.15.
Philstocks Financial Inc. research associate Claire Alviar said investors hunted for bargains after the bourse declined the day before.
The market broke its 6,600 support level on Monday, when the Department of Health reported that new coronavirus cases reached 5,404, the fourth-highest single-day infection tally the country recorded and the highest since 5,277 on August 26.
The performance of US markets overnight also fueled optimism, according to Alviar.
The Dow Jones, S&P 500 and Nasdaq rose by 0.53 percent, 0.65 percent and 1.05 percent, respectively, on hopes that the continued rollout of Covid-19 vaccines and the Biden administration’s recently approved $1.9-trillion stimulus package would help the US recover from the pandemic.
Alviar noted that market confidence seemed to be absent despite the minimal gains, as value turnover was only P5.89 billion, the lowest so far this year.
“For [Wednesday], we are expecting investors to still monitor [new] Covid-19 cases and find a hint on what will be the decision of the government to control the spread of the” disease, she said.
She also expects market value turnover to remain below the year-to-date average of P11.73 billion if the current situation lingers.
Investors are also seen to monitor whatever decision the US Federal Reserve’s will make on interest rates and its outlook on the American economy.
The indices of most local sectors closed in in the green, with industrial leading gainers at 1.18 percent. Holding firms and propery lost 0.93 percent and 0.13 percent.
Total volume turnover was at 3.3 billion shares, valued at P5.9 billion.
Winners edged out losers, 118 to 97, while 41 securities were unchanged.