STOCKS rebounded on Tuesday as investors picked up bargains following improved energy consumption data reported by Manila Electric Co. in the first half of the year and progress in the country’s vaccination program.
The Philippine Stock Exchange index (PSEi) gained 149.97 points or 2.35% to close at 6,522.58 on Tuesday, while the all shares index improved by 74.60 points or 1.88% to finish at 4,039.75.
“With the market on [an] oversold level, investors went bargain hunting after the reported increase in Meralco’s (Manila Electric Co.) first half energy consumption from all sectors with both commercial and industrial sectors, showing positive signs of economic recovery with the ease in restrictions,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message.
“Also, vaccine rollout [has] picked up lately…” he added.
Meralco on Monday said its commercial volumes went on a “gradual rebound” as quarantine restrictions were eased, along with the pickup of retail sales in malls and other commercial establishments.
On the other hand, its industrial sales volume posted a 23% increase year on year to 6,781 GWh (Gigawatt hours).
“The gradual opening of the global economy is reflected in the increasing demand for semiconductor and electronic components,” Meralco said.
Meanwhile, the Health department reported on Monday that a total of 17,202,421 coronavirus vaccine jabs have been administered. Over 11.11 million have received their first dose, while 6.09 million are already fully vaccinated against the disease. The government targets to vaccinate as many as 70 million by yearend.
All sectoral indices closed higher on Tuesday. Property climbed by 117.31 points or 3.93% to 3,098.14; mining and oil went up by 310.66 points or 3.31% to 9,686.09; services rose by 37.01 points or 2.43% to 1,556.95; financials improved by 26.86 points or 1.94% to 1,409.37; holding firms gained 111.90 points or 1.75% to 6,503.33; and industrials added 131.43 points or 1.45% to end at 9,137.72.
Value turnover inched up to P4.30 billion with 1.17 billion issues traded on Tuesday, from the P4.15 billion with 1.95 billion shares switched hands on Monday.
Advancers beat decliners, 155 against 43, while 29 names closed unchanged.
Net foreign selling slowed to P329.92 million on Tuesday from the P630.51 million recorded on Monday.
AB Capital Securities, Inc. Junior Equity Analyst Lance U. Soledad expects the index to trade between 6,150 to 6,450 today.
“We still expect the index to trade with a downward bias as the Delta variant lingers and remains to be a major threat to recovery prospects,” Mr. Soledad said in a Viber message.
“We expect the recovery rally to continue through the next couple of days with 6,600 as the key resistance,” China Bank Securities Corp. Research Head Rastine Mackie D. Mercado said in an e-mail. — Keren Concepcion G. Valmonte