By Denise A. Valdez, Reporter
LOCAL SHARES bounced back yesterday as investors gained confidence from positive developments in China and the United States.
The 30-member Philippine Stock Exchange index (PSEi) climbed 190.07 points or 3.70% to end at 5,321.23 on Tuesday. The broader all shares index likewise increased 93.46 points or 2.97% to 3,237.77.
“(The) local market moved up as regional markets were mostly up after manufacturing data from China showed expansion from a contraction in previous data,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message.
Factory activity in China unexpectedly expanded in March from a collapse the month before, but analysts caution that a durable near-term recovery is far from assured as the coronavirus disease 2019 (COVID-19) crisis knocks foreign demand and threatens a steep economic slump.
China’s official Purchasing Managers’ Index rose to 52 in March from a plunge to a record low of 35.7 in February, the National Bureau of Statistics said on Tuesday, above the 50-point mark that separates monthly growth from contraction, Reuters reported.
The unexpected expansion was received well by investors, as evidenced by the growth in Chinese markets yesterday: the Shanghai Shenzhen CSI 300 and Shanghai Stock Exchange Composite indices climbed 0.33% and 0.11%, respectively.
For Regina Capital Development Corp. Head of Sales Luis A. Limlingan, the higher close of the Philippine market is also attributable to comments of President Donald Trump that he is willing to strengthen measures to temper the spread of COVID-19 in the US.
Reuters reported that Mr. Trump said he may “(toughen) up a little bit” the social distancing guidelines to slow down the mounting cases of COVID-19 infections in US. Johns Hopkins University reported more than 164,600 confirmed cases in US as of yesterday afternoon, the highest all over the world.
“Philippine stocks closed higher today, building on a strong rally from last week as the US extended measures to contain the coronavirus outbreak,” Mr. Limlingan said via text.
Sectoral indices at the local bourse all improved at Tuesday’s close. Holding firms surged 249.48 points or five percent to 5,233.52; industrials rose 290.08 points or 4.77% to 6,361.71; financials picked up 47.19 points or 4.01% to 1,223.64; mining and oil gained 114.35 points or 2.82% to 4,161.90; services added 22.41 points or 1.91% to 1,192.04; and property increased 26.73 points or 0.98% to 2,748.30.
Value turnover stood at P7.42 billion on Tuesday with 546.31 million issues switching hands, up from Monday’s P5.33-billion worth of 535.84 million issues.
Advancers beat decliners, 132 against 53, while 41 names ended unchanged. Net foreign selling was trimmed to P634.52 million yesterday from P887.40 million on Monday. — with Reuters