Stocks bounce back ahead of profit data

MANILA, Philippines — The stock market bounced back yesterday ahead of the release of corporate earnings results and reports the Chinese economy grew in the second quarter, analysts said.

The main composite index Philippine Stock Exchange index (PSEi)  surged by 131.15 points, or 2.18 percent, to settle at 6,147.66.

Likewise, the broader All Shares index gained by 63.44 points, or 1.79 percent, to end at 3,607.80.

All indexes rallied as well as the market rebounded back to the 6,100 level after the previous day’s selloff.

AB Capital Securities said the market rebounded ahead of the earnings season and the growth of China’s economy in the second quarter.

Traders said market investors welcomed President Duterte announcement of general quarantine measures and not a return to stricter quarantine.

Investors also welcomed the news of Moderna’s encouraging vaccine trial results.

“Investors found relief as most of the Philippines remained in less stringent quarantine measures, causing the local bourse to climb by 131.15 points. Hopes stepping from the positive early stage human trial results of Moderna’s COVID-19 vaccine candidate also helped in yesterday’s rally,” Philstocks Financials said.

UCPB Securities said that the PSEi reacted positively to the second quarter GDP data of China  and the extended general community quarantine in Metro Manila until July 31.

Volume and value turnover registered 4.80 billion and P4.81 billion, respectively. Properties led a broad-based advance yesterday, with gainers edging losers 135 to 62.