The benchmark Philippine Stock Exchange index surged by 158.31 points to 6,128.64, 2.65 percent higher than Monday’s close as investors cheered the increase in remittance last August.
In a text message, Philstocks Financial Inc. assistant manager for research and online engagement Claire Alviar said the positive cues from the US market overnight pushed the market upwards.
Alviar also pointed out that investors overseas also anticipate the third-quarter earnings.
The cash remittances in August grew by 4.29 percent year-on-year, bringing the year-to-date remittances to $20.99 billion.
It boosted sentiment as higher remittance may help the peso from weakening against the US dollar.
On Tuesday, the net market value turnover has improved to P4.55 billion but remains below the P5 billion mark.
Among index members, JG Summit Holdings Inc. surged the most by 11.30 percent while Manila Electric Company was at the bottom, losing 2.24 percent.
Steadily above 6K
The index rebounded above the 6,000 mark as investors turned bargain hunters and picked up badly-beaten index names across the board, Regina Capital Development Corp. managing director Luis Limlingan said.
In the US, the other night’s moves were also grounded on solid earnings reports coming from the likes of Bank of America and Bank of New York Mellon.
More big bank earnings are on deck. Goldman Sachs is also set to report quarterly results.
Overseas Filipino workers’ remittances rose four percent year-on-year in August as Pinoys working abroad took advantage of an elevated peso, boosting the local bourse’s performance. Prices of oil steadied as China’s continuation of loose monetary policy was partly offset by fears that high inflation and energy costs could drag the global economy into recession. Brent crude futures closed at $91.75/bbl, while the US West Texas Intermediate crude futures were up +0.06 percent at $85.56/bbl.