Global recovery signs, lower US virus cases lift stocks
PHILIPPINE shares inched up on Tuesday despite cautious market sentiment as investors turned optimistic about global recovery after the United States reported lower cases of coronavirus disease 2019 (COVID-19).
The benchmark Philippine Stock Exchange index (PSEi) climbed 31.82 points or 0.51% to close at 6,196.71 on Tuesday, while the all shares index gained 13.51 points or 0.35% to end at 3,834.78.
“The local bourse ended higher together with most Asian markets, as overnight markets finished on green territory due to investors feeling optimistic over the recovery of the global economy,” Darren Blaine T. Pangan, trader at Timson Securities, Inc., said in a Viber message.
“This comes after reports circulated that the daily new COVID-19 cases in the US started to decline already,” Mr. Pangan said.
However, with the lack of developments at home, investors remained cautious.
“The market managed to end slightly higher, mainly flat despite increased trading and volatility in several blue-chips,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail, referring to some of the companies in the 30-member PSEi.
“The sentiment remains overly cautious as investors have not gained any optimism from the positive vaccine progress on the perception that the uncertainty risks, vastly outweigh the developments,” Mr. Mangun added.
Sectoral indices were split on Tuesday. Holding firms went up by 59.80 points or 0.97% to 6,192.66; financials improved by 7.05 points or 0.51% to 1,376.20; and property climbed 12.26 points or 0.41% to 2,962.65.
Meanwhile, mining and oil declined by 54.94 points or 0.59% to 9,197.88; services lost 3.18 points or 0.21% to finish at 1,447.10; and industrials shed 5.42 points or 0.06% to 8,535.10.
Value turnover went up to P6.02 billion with 1.16 billion shares switching hands on Tuesday, from the P4.48 billion with 1.09 billion issues traded on the previous trading day.
Advancers outnumbered decliners, 98 against 88, while 58 names closed unchanged.
Net foreign selling dropped to P88.89 million on Tuesday from the P667.86 million in net outflows logged on Monday.
Timson Securities’ Mr. Pangan said he expects the index to trade between 6,150 and 6,490.
“The market is expected to continue lower, and we highly encourage medium to long-term investors to start accumulating,” AAA Southeast Equities’ Mr. Mangun said. — Keren Concepcion G. Valmonte
