The Philippine Stock Exchange Index (PSEi) bounced back on Tuesday, gaining 1.95 percent or 113.37 points to close at 5,912.69, as investors seized on attractively priced shares and welcomed a sharp decline in fuel costs.
Analysts from Philstocks Financial Inc. attributed the rally to bargain hunting after recent declines made valuations more appealing. The broader all-shares index also ended higher.
Market sentiment was further buoyed by news of a significant rollback in fuel prices, which could help ease inflation pressures. Additionally, the government's announcement of plans to establish a strategic petroleum reserve program boosted confidence in the country's energy security.
"The rebound was driven by investors taking advantage of lower prices, while the fuel rollback and energy security initiatives provided a positive backdrop," said Ron Acoba, chief investment strategist at Trading Edge Consultancy.