Index recovers from 2- day slump

The stock market recovered yesterday on a string of good news including a rebound in US stocks.

The benchmark Philippine Stock Exchange index (PSEi) gained 90.13 points, or 1.14 percent, to finish at 7,978.57, while the broader All Shares index gained 39.68 points, or 0.84 percent, to end at 4,730.81.

All other counters closed in positive territory, with the services index leading the gains with an increase of 2.10 percent.

Total value turnover reached P7.14 billion with advancing stocks outnumbering decliners, 130 to 60 while 47 stocks were left unchanged.

Luis Limlingan, managing director at Regina Capital attributed the market’s positive outcome to a rebound in US stocks, a recovery in oil prices and an improvement in the US economy.

“US stocks rebounded to close near session highs and the Dow avoided its first eight day losing streak in five-and-a-half years as a four percent rally in crude prices energized the oil sector. The US labor market remained solid during July even as job creation moderated,” Limlingan said.

Furthermore, he also noted that private payrolls increased 179,000, higher than the market estimate of just 170,000, according to payroll processor Automatic Data Processing Inc. and forecasting firm Moody’s Analytics.

“The US service economy remained on a solid expansionary path during July. European equities gained while Asian stocks advanced, rebounding from their worst day since the aftermath of the Brexit vote, as crude oil held onto a recovery,” Limlingan said.