PSE index nears 6,000 mark on recovery hopes
By Denise A. Valdez, Senior Reporter
THE MAIN INDEX inched closer to the 6,000 level on Monday as investors remained optimistic over the economy’s recovery amid relaxed quarantine restrictions.
The bellwether Philippine Stock Exchange index (PSEi) ended Monday’s session at 5,997.14, up 29.18 points or 0.48% from last Friday’s close. The broader all shares index climbed 13.30 points or 0.37% to 3,590.68.
“The market opened lower but eventually ended with a gain, continuing the upward move from last Friday’s trading, as investors continue to feel positive about the gradual reopening of the local economy,” Timson Securities, Inc. Trader Darren T. Pangan said in a text message.
Metro Manila and nearby regions have been put under a relaxed lockdown for September as the government aims to balance economic recovery with rising coronavirus cases.Many businesses once closed have resumed operations, while high-contact establishments such as dining restaurants are on limited capacity.
“[I]nvestors are now more confident in other sectors of the economy taking profits from issues that were high-flyers despite the pandemic. The market will continue to move higher throughout the week,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an email.
Investors are also on the lookout for developments regarding the Federal Open Market Committee (FOMC) meeting on Sept. 15-16, which analysts are expecting to result in positive movement in the market.
“Philippines shares closed up modestly higher as focus of the week shifts to the FOMC meeting and FTSE rebalancing,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.
Most Asian stocks were treading green territory when the local market closed yesterday. Japan’s Nikkei 225 and Topix indices climbed 0.65% and 0.88%, respectively.
Half of sectoral indices at the PSE ended Monday’s session with gains. Property rose 58.22 points or 2.13% to 2,791.89; mining and oil added 74.99 points or 1.25% to 6,066.35; and holding firms increased 38.82 points or 0.62% to 6,251.76.
On the other hand, industrials fell 37.24 points or 0.46% to 8,034.30; financials shed 4.81 points or 0.41% to 1,146.09; and services slid 3.98 points or 0.26% to 1,483.53 at the close of trading.
Value turnover on Monday stood at P4.71 billion with 1.13 billion issues switching hands, slightly up from Friday’s P4.18 billion with 1.11 billion issues.
Advancers bested decliners by 11, 110 against 99, while 37 names ended unchanged.
Offshore investors remained sellers, but net outflows were reduced to P59.79 million on Monday from P527.02 million last Friday.
