Stocks rise as Metro Manila mayors shorten curfew

PHILIPPINE shares closed in the green on Wednesday as Metro Manila mayors agreed to shorten curfew hours to help increase economic activity.

The benchmark Philippine Stock Exchange Index (PSEi) gained 112.67 points or 1.77% to close at 6,469.14 on Wednesday, while the all shares index improved by 47.18 points or 1.2% to finish at 3,957.50.

“Market rebounded today as local government [units through their mayors backed] further easing of restrictions [through] flexible modified enhanced community quarantine (MECQ) while reducing curfew time… to allow our economy to further open,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message on Wednesday.

“Investors in Philippine shares began early window dressing as investors start to buy ahead of more corporate earnings releases, while [others] are keeping positive with the proposal for flexible MECQ,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Meanwhile, Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a separate Viber message: “Most investors are still on the sidelines, waiting for the next quarantine measures after April 30.”

Metro Manila mayors have recommended to put the capital under “flexible MECQ” and agreed to adjust curfew hours to 10 p.m. to 4 a.m. after April 30 to allow businesses to open for longer.

Malacañang was expected to announce new quarantine measures on Wednesday.

The Health department reported 6,895 new coronavirus cases on Wednesday, which brought the country’s tally to 1.02 million. Active cases were at 67,769.

All sectoral indices closed higher on Wednesday. Holding firms increased by 149.71 points or 2.33% to 6,573.95; property gained 57.39 points or 1.85% to end at 3,143.94; industrials went up by 86.96 points or 1.01% to 8,674.70; financials improved by 13.15 points or 0.94% to 1,405.99; services climbed by 12.70 points or 0.88% to 1,443.68; and mining and oil inched up by 6.97 points or 0.07% to close at 9,196.30.

Value turnover went up to P5.31 billion on Wednesday with 2.91 shares switching hands from the P4.61 billion seen on Tuesday with 1.88 billion issues traded.

Advancers outnumbered decliners, 111 versus 70, while 65 names closed unchanged.

Net foreign selling inched down to P617.51 million on Wednesday from the P652.52 million in net outflows seen on Tuesday.

Diversified Securities’ Mr. Pangan said he expects the index to trade sideways with a downward bias in the coming days.

“Index resistance is 6,500 due to slow vaccine rollout while high level of infection rates at four-digit remains with foreign investors continuing its selling mode,” Mr. Pangan said. — Keren Concepcion G. Valmonte