PHILIPPINE SHARES sustained their upward momentum on Monday as Metro Manila embarked on the first day of a relaxed lockdown.
The bellwether Philippine Stock Exchange index (PSEi) rose 91.33 points or 1.56% to close at 5,930.17, while the broader all shares index increased 52.52 points or 1.51% to 3,510.22.
“Local shares continued their rise close to the 6,000 territory as investors grew optimistic with businesses returning closer to normal during GCQ (general community quarantine),” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.
The GCQ in Metro Manila — the government’s formal term for a relaxed lockdown — allowed more business sectors to reopen therefore pushing people out of their homes to report for work.
While there have been concerns raised by government officials and the public about health repercussions given the coronavirus disease 2019 (COVID-19) pandemic, investors chose to look at the bright side that this relaxed lockdown allows the economy to restart.
“The selling pressure was extremely light as most investors were optimistic with the lifting of restrictive quarantine measures,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.
Timson Securities, Inc. Trader Darren T. Pangan also noted the local bourse improved with the backdrop of anti-racism protests in the United States over the weekend.
Wall Street ended Friday’s session mixed: the Dow Jones Industrial Average index dipped 0.7% while the S&P 500 and Nasdaq Composite indices increased 0.48% and 1.29%, respectively.
“The country is being perceived as a less risky asset with investors awaiting Trump’s response to a Chinese national security law for Hong Kong and its potential impact on an already fragile global economy,” Regina Capital’s Mr. Limlingan said.
Nearly all sectoral indices at the PSE ended Monday’s session in green territory. Property gained 101.71 points or 3.54% to 2,972.78; industrials accelerated 184.94 points or 2.53% to 7,496.03; mining and oil improved 74.85 points or 1.71% to 4,437.57; financials added 15.88 points or 1.35% to 1,192.30; and holding firms rose 73.25 points or 1.23% to 6,019.77.
The sole declining index was services, which slid 9.33 points or 0.68% to close at 1,353.11 at the end of Monday’s session.
Value turnover stood at P6.98 billion with 820.04 million issues switching hands, lower than Friday’s P20.39 billion with 1.97 billion issues switching hands.
Advancers outran decliners, 127 against 63, while 37 names ended unchanged.
Foreign investors recorded a net buying of P268.58 million on Monday, down from Friday’s P955.39 million.
“The main index ended the day a few points away from its resistance at 5,950. If it breaks above this level in the coming days, this will begin a new uptrend,” AAA Southeast Equities’s Mr. Mangun said. — Denise A. Valdez