THE MAIN INDEX broke into the 5,800 level at the end of Friday’s session as bulls flocked to the market on optimism over the easing of the lockdown in Metro Manila starting next week.
The benchmark Philippine Stock Exchange index (PSEi) rose 268.62 points or 4.82% to close at 5,838.84. The broader all shares index likewise climbed 109.04 points or 3.25% to 3,457.70.
“The local market surged 4.82%, after the government eased lockdown measures by placing Metro Manila under general community quarantine effective June 1, along with it, is the comeback of net foreign buying in the market which was the highest amount in three months,” Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a text message.
President Rodrigo R. Duterte announced Thursday night that Metro Manila will be under general community quarantine starting June 1, allowing more people outside their homes after over two months of strict lockdown measures.
With the easing of restrictions, more businesses and government offices will be allowed to resume work, allowing the economy to slowly reopen.
The local bourse started Friday’s session with the PSEi opening at 5,600.72, its lowest point for the whole trading day. It closed at 5,838.84, also its intraday best.
Foreign investors turned net buyers for the first time in 17 days, with Friday’s net inflows amounting to P955.39 million.
“Investors, local and foreign, had a bargain hunting of stocks that were sold-off during the (lockdown)… Most businesses are allowed to open, and are anticipated to generate revenues again,” Ms. Alviar said.
For Regina Capital Development Corp. Head of Sales Luis A. Limlingan, the market’s climb is also attributable to last minute window dressing.
Sectoral indices at the PSE were mostly gainers on Friday. Holding firms rose 350.54 points or 6.26% to 5,946.52; financials increased 59.81 points or 5.35% to 1,176.42; services rose 45.30 points or 3.43% to 1,362.44; property added 75.15 points or 2.68% to 2,871.07; and industrials climbed 120.29 points or 1.67% to 7,311.09.
Meanwhile, mining and oil dropped 1.24% or 54.9 points to 4,362.72.
Value turnover increased to P20.39 billion on Friday from the previous session’s P4.47 billion, with 1.97 billion shares changing hands.
Advancers beat decliners, 95 to 81, while 40 names ended unchanged. — Denise A. Valdez