PSE index ends higher as worries over virus ease
By Denise A. Valdez, Reporter
THE MAIN INDEX closed higher on Monday as investor worries over the coronavirus disease 2019 (COVID-19) started to wane and bargain hunters flocked the market in anticipation of corporate earnings.
The benchmark Philippine Stock Exchange index (PSEi) added 44.85 points or 0.61% to end at 7,326.85 yesterday, while the broader all shares index increased 19.59 points or 0.45% to 4,338.70.
“Local shares notched a gain to start the week, as COVID-19 new cases declined sharply…,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message Monday.
Reuters reported over the weekend that the number of confirmed cases of COVID-19 cases in China dropped 21.6% on Saturday, citing the country’s health commission, which said it is a result of its efforts to stop the spread of the virus. Mr. Limlingan said this helped temper worries of investors over the economic impact of the epidemic.
But for Christopher John Mangun, research head at AAA Southeast Equities, Inc., the general sentiment of investors is still “extremely cautious despite the lack of panic selling.”
“Minor gains in several blue chips allowed the PSEi the end slightly higher despite average trading volumes and more foreign outflows… Most investors are on the sidelines waiting for a better environment,” he said in an e-mail.
Some PSEi members that gained yesterday were Metro Pacific Investments Corp. (3.58%), SM Investments Corp. (2.32%) and Aboitiz Equity Ventures, Inc. (2.13%).
Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said bargain hunters also helped lift the market yesterday. “Investors took opportunities from Friday’s dip in anticipation for the upcoming 2019 full year earnings reports (of listed firms),” he said in a text message.
He added the expected rate cut from the central bank in the second quarter also helped improve market sentiment yesterday.
Sectoral indices were mixed at the close of trading. Holding firms improved 95.26 points or 1.35% to 7,147.23; industrials advanced 54.66 points or 0.61% to 8,991.30; and financials added 5.66 points or 0.32% to 1,744.61.
On the other hand, mining and oil lost 28.56 points or 0.40% to 7,030.08; services dropped 4.36 points or 0.30% to 1,435.94; and property slipped 1.77 points or 0.04% to 3,926.88.
Value turnover stood at P7.84 billion with 782.60 million issues changing hands, up from the previous session’s P6.45-billion worth of 888.41 million issues.
Advancers beat decliners, 107 against 77, while 49 names closed unchanged.
Net foreign selling declined to P336.82 million yesterday from Friday’s P864.82 million.
