Stocks rise further on hopes of economic rebound
By Denise A. Valdez, Reporter
THE benchmark Philippine Stock Exchange index (PSEi) maintained its surge on Wednesday as bullish investors pulled the market up on confidence over the country’s economic rebound.
The main index picked up 220.48 points or 3.65% to close at 6,245.65, while the broader all shares index gained 106.59 points or 3% to end at 3,658.31.
“The market continued its ascent on the back of optimistic sentiment on the country’s economic prospects,” PNB Securities, Inc. President Manuel Antonio G. Lisbona said in a text message.
The Philippines is currently on its first week of a relaxed lockdown in its capital, letting various sectors of the economy to go back to regular operations.
While a few quarantine restrictions remain in place, investors are hopeful that the lockdown will continue easing, and eventually, the economy may return to its growth path.
Claire T. Alviar, research associate at Philstocks Financial, Inc., said the relaxing of lockdown measures abroad also helped improve investor sentiment.
“The local market extended its rally, surging 3.66% as hopes for economic recovery increased amid easing of lockdown measures in the Philippines, as well as in other countries,” she said in a text message.
She noted this optimism is evident in the higher value turnover on Wednesday at P8.25 billion from P7.29 billion on Tuesday. Some 1.31 billion issues switched hands.
“Investors’ participation…is higher than the year-to-date average of P6.32 billion. Some investors were starting to accumulate bargain stocks as hopes for reopening of economies have increased,” Ms. Alviar said.
All sectoral indices ended in green territory on Wednesday. Property rose 174.58 points or 5.77% to 3,197.31; financials gained 60.62 points or 5.02% to 1,266.10; holding firms added 181.10 points or 2.93% to 6,342.25; mining and oil climbed 97.13 points or 2.17% to 4,563.84; services increased 26.85 points or 1.97% to 1,386.49; and industrials picked up 125.44 points or 1.65% to 7,715.78.
The session ended with more advancers than decliners, 143 against 59, while 44 names ended unchanged.
Foreign investors went back to being sellers after a three-day streak of net buying. Net outflows stood at P329.35 million on Wednesday.
“Should the market continue to climb, the first resistance we see is 6,340 then 6,500. Given the speed of the run-up, we can expect some profit taking to take place at these levels,” PNB Securities’ Mr. Lisbona said.
Ms. Alviar of Philstocks concurred: “(Yesterday’s) net foreign selling ends the three straight days of net foreign buying, which (makes us) think that the rally may not be sustained and profit taking may trigger (today).”
