THE MAIN INDEX wrapped the week to climb for five straight days, pushing it to the 6,400 level on Friday, its best finish since June.
The 30-member Philippine Stock Exchange index (PSEi) surged 139.43 points or 2.19% to 6,484.06, while the broader all shares index rose 71.20 points or 1.87% to end at 3,859.95.
The last time the main index reached the 6,400 level was on June 11 when it closed at 6,476.24. Since entering bear territory in March, the PSEi’s best finish was on June 9 at 6,583.84.
The PSEi opened at 6,370.92 and kept an upward trajectory throughout the trading day, hitting a high of 6,484.45.
“This market rally has not been seen since the start of the easing of quarantine restrictions in June. I think that investors are looking into the reduction of daily COVID-19 (coronavirus disease 2019) cases and corporate earnings,” Philstocks Financial, Inc. Research Associate Piper Chaucer E. Tan said in a text message.
The Department of Health has been reporting less than 2,000 new COVID-19 cases since Tuesday, boosting investor sentiment that the country is moving closer to handling the virus outbreak.
Meanwhile, on Friday, Universal Robina Corp. (URC), a blue chip stock, reported third quarter earnings growth of 6% year-on-year. Last Wednesday, Bank of the Philippine Islands (BPI) also reported its third quarter income, which fell 33.7% from last year. URC and BPI shares closed Friday’s session up 1.21% and 1.92%, respectively.
“Another value stock-led rally pushed the PSEi solidly into the green to close the week as positive earnings reports and optimism about US stimulus (lifted the market),” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.
US House Speaker Nancy Pelosi said on Thursday a stimulus deal is nearing approval in America, which helped US markets to rise overnight. The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite indices increased 0.54%, 0.52% and 0.19%, respectively.
Back home, nearly all sectoral indices ended Friday’s session in green territory. Holding firms rose 211.59 points or 3.25% to 6,722.05; property increased 61.06 points or 1.98% to 3,137.75; industrials grew 150.85 points or 1.77% to 8,628.44; financials added 17.09 points or 1.35% to 1,274.74; and mining and oil climbed 11.80 points or 0.15% to 7,705.73.
The sole index in red territory was services, which shed 2.55 points or 0.17% to 1,460.71 at the end of Friday’s session.
Value turnover stood at P8.49 billion with 1.38 billion issues switching hands, lower than the previous day’s P9.81 billion with 1.28 billion issues.
Advancers bested decliners, 129 against 81. Some 48 names ended unchanged.
Net foreign buying grew to P795.65 million on Friday from P214.2 million in the last session to log a third straight day that foreign investors have posted net inflows. — Denise A. Valdez