THE PHILIPPINE Stock Exchange index (PSEi) broke through the 6,100 level on Tuesday as the market rallied amid growing investor optimism.
The main index grew 93.45 points or 1.55% to close the session at 6,112.71. The broader all shares index likewise accelerated 40.23 points or 1.10% to end at 3,681.26.
The PSEi’s close on Tuesday was its best finish in more than two months, trailing its 6,156.45 close on Aug. 18.
“The PSEi gained momentum and ended higher, breaking above its 6,030 daily resistance level. Investors continue to gain optimism that the economy’s recovery will speed up with the easing of mobility and quarantine restrictions,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.
After the government announced easing rules on non-essential travel last week, which followed a campaign that encouraged people to start going out, investors started hoping for more economic activity in the fourth quarter, which would boost the revenues of listed companies that have been dampened over the past months.
“The PSEi had another rally and this time, we can see that investors’ focus was on the index member stocks,” Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a text message.
“The COVID-19 (coronavirus disease 2019) pandemic is still a risk to our economy and our health. But even with the risk of COVID-19 infection, the Philippines needs to reopen and bring back demand. Gradual reopening of the economy spurs optimism,” she added.
Nineteen out of 30 PSEi members ended Tuesday’s session with gains, led by Jollibee Foods Corp. (+9.31%), GT Capital Holdings, Inc. (+6.11%), Ayala Land, Inc. (+5.03%), Alliance Global Group, Inc. (+4.90%) and LT Group, Inc. (+4.44%).
The growth of COVID-19 cases in the country has also started slowing, which helped improve investor sentiment, Mr. Mangun said. Some 2,638 new cases were reported on Monday, bringing the country’s tally to 359,169 total cases.
All sectors except the mining and oil index posted gains on Tuesday. Financials increased 23.57 points or 1.98% to 1,209.01; property improved 54.63 points or 1.92% to 2,891.22; industrials rose 152.70 points or 1.88% to 8,276.68; holding firms climbed 84.25 points or 1.35% to 6,302.75; and services added 2.97 points or 0.20% to 1,452.93.
Mining and oil was the sole declining index, posting a 354.78-point or 4.59% slump to close at 7,361.86 at the end of session.
Value turnover stood at P8.23 billion on Tuesday, up from the previous day’s P5.44 billion. Some 2.24 billion issues switched hands.
Advancers outnumbered decliners, 112 against 98, while 46 names ended unchanged.
Foreign investors remained as net sellers, posting net outflows of P718.04 million on Tuesday from P614.46 million on Monday.
“The main index is currently up 2.4% for the week. We may see it pull back before moving higher to test its next resistance at 6,170,” Mr. Mangun said. — Denise A. Valdez