By Denise A. Valdez, Reporter
LOCAL SHARES sustained their climb on Wednesday as bargain hunters continued fanning the market’s rise.
The benchmark Philippine Stock Exchange index (PSEi) rose 165.17 points or 2.85% to close at 5,946.05 yesterday, as the broader all shares index added 82.78 points or 2.38% to 3,551.73.
“Further bargain hunting lifted the local bourse, taking cues from the US indices performance overnight,” Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a text message yesterday.
US markets closed in green territory on Tuesday with the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite indices gaining 2.39%, 3.06% and 3.95%, respectively.
“The continued rally was on the back of optimism brought by the fiscal stimulus package of the Philippine government to fight the current pandemic,” Ms. Alviar added.
The government continued announcing fiscal measures to address the economic impact of the coronavirus disease 2019 (COVID-19) pandemic, as President Rodrigo R. Duterte approved on Monday night a P51-billion allocation for wage subsidy to 3.4 million Filipinos working in small businesses.
“Local shares continued to jump, resuming the market’s sharp rebound from last month’s lows, as investors grew more optimistic about the COVID-19 outbreak,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.
The Coronavirus Resource Center of Johns Hopkins University showed a declining trend in new COVID-19 cases starting April 11. Daily cases have been dropping from over 79,800 on Apr. 11, over 75,200 on Apr. 12, over 70,3000 on April 13, to over 58,800 on Apr. 14. As of yesterday afternoon, total COVID-19 cases in the world stood at 1.98 million, with deaths reaching more than 126,700.
Sectoral indices at the local bourse all closed with gains on Wednesday. Financials rose 53.96 points or 4.47% to 1,260.00; mining and oil increased 189.36 points or 4.06% to 4,850.15; holding firms added 187.98 points or 3.31% to 5,852.57; property picked up 76.46 points or 2.55% to 3,069.28; services gained 13.45 points or 1.03% to 1,319.49; and industrials improved 73.39 points or 0.95% to 7,728.99.
Value turnover jumped to P9.1 billion from Tuesday’s P7.38 billion. Some 911.54 million issues switched hands yesterday.
Advancers outnumbered decliners, 135 against 66, while 40 names ended unchanged.
Money continued exiting the market, with net foreign selling growing to P1.37 billion from P1.29 billion seen on Tuesday.
“(Yesterday’s) strong value flows, once sustained, could bring the market back to the 6,000 level,” Ms. Alviar said. “6,000 mark remained to be a resistance, particularly that foreigners are still sellers despite the rally, and as COVID-19 cases are mounting in the country. Sell-on-rally would be the strategy for now in the short-run.”