LOCAL shares ended in positive territory on Friday, marking its third consecutive climb as the market rallied on investor bargain hunting.

The bellwether Philippine Stock Exchange index (PSEi) rose 54.53 points or 0.91% to 5,999.4 while the broader all-shares index climbed 23.99 points or 0.67% to 3,586.27.

In a mobile phone message, Philstocks Financial, Inc. Research Associate Piper Chaucer E. Tan said the market’s three-day rally can be attributed to the bargain hunting of local equities and the recent announcement of the Bangko Sentral ng Pilipinas (BSP) to maintain holding rates.

On Thursday, the Monetary Board announced their decision to keep the rates on the BSP’s overnight reverse repurchase, lending, and deposit facilities at 2.25%, 2.75%, and 1.75%, respectively.

“Major emerging markets are somehow more attractive than developed economies. Add to that the BSP’s holding rates that signals attractiveness towards Philippine equities for a much higher return, compared to fixed income equities,” Mr. Tan said.

However, Regina Capital Development Corp. Head of Sales Luis A. Limlingan noted that the local market already closed before the announcement that United States President Donald J. Trump and his wife have tested positive for the coronavirus disease 2019 (COVID-19).

“Local investor reaction did not reflect the news. But upon release, US futures have already tumbled by 400 points as of this writing,” Mr. Limlingan said in a mobile phone message.

In the midst of his re-election bid, Mr. Trump announced in a tweet on Friday that he and his wife would go into quarantine after contracting the said virus.

Back home, Timson Securities, Inc. Head of Online Trading and Trader Darren Blaine T. Pangan said the local market ended higher as investors continue to be optimistic due to the improved manufacturing activity in the country.

On Thursday, IHS Markit said the Philippine purchasing managers’ index rose to 50.2 in September, compared with 47.3 in August, marking the first time since February that it breached the 50-neutral level which outlines expansion from contraction.

Meanwhile, all sectoral indices closed in green territory during Friday’s close.

Property improved 27.55 points or 0.99% to 2,800.06; holding firms went up 60.07 points or 0.97% to 6,199.82; industrials increased 67.73 points or 0.85% to 7,973.54; financials picked up 9.28 points or 0.79% to 1,172.42; services advanced 3.6 points or 0.24% to 1,479.19; and mining and oil edged up 7.79 points or 0.13% to 5,857.92.

Trading value was at P4.91 billion on Friday with 1.47 billion issues switching hands, against Thursday’s P5.43 billion worth of 1.96 billion shares.

Advancers outpaced decliners 93 against 92, while 57 names ended unchanged.

Foreigners remained as sellers, logging a net outflow of P268.64 million, less than the P545.80 million during the previous trading day.

“Next week, the market’s support may be placed at the 5,750 level while resistance is pegged at 6,200,” Timson’s Mr. Pangan said. — Revin Mikhael D. Ochave