PSEi rises to 7,000 level on lower COVID-19 cases
PHILIPPINE shares climbed past the 7,000 mark on Wednesday on the country’s improving coronavirus disease 2019 (COVID-19) situation and the slower inflation print logged in September.
The Philippine Stock Exchange index (PSEi) gained 76.21 points or 1.09% to close at 7,057.45 on Wednesday, while the all shares index rose 50.97 points or 1.17% to end at 4,409.14.
“PSEi’s breakout above 7,000 reflects growing optimism about greater economic reopening (potentially a shift to Alert Level 3 in the weeks ahead) as infection cases slow and the generally risk-on mood in offshore equities markets,” First Metro Investment Corp. Head of Research Cristina S. Ulang, head of research at First Metro Investment Corp., said in a Viber message.
“Investors took positively the recently released inflation report for the month of September, as well as the improving COVID-19 situation in the country,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a separate Viber message.
Headline inflation slowed to 4.8% in September from the 4.9% recorded in August, the Philippine Statistics Authority reported on Tuesday.
Meanwhile, the country logged 9,055 new COVID-19 infections on Tuesday. Active cases stood at 103,077, while the national tally went up to over 2.61 million.
The country has received 77.4 million vaccine jabs so far. As of Oct. 5, the government has administered nearly 47.78 million vaccine doses with over 22.4 million fully vaccinated.
The government hopes to vaccinate 50% of the population by the end of the year.
The Finance department on Tuesday said it is in talks with the World Bank, the Asian Development Bank and the Asian Infrastructure Investment Bank to secure up to P45.6 billion or $900 million in loans to procure vaccines.
All sectoral indices closed in the green on Wednesday. Property climbed 70.76 points or 2.35% to 3,073.38; services went up 45.82 points or 2.32% to 2,017.13; mining and oil rose 136.33 points or 1.41% to finish at 9,763.74; financials gained 17.57 points or 1.24% to 1,430.81; industrials improved by 112.09 points or 1.08% to 10,441.98; and holding firms inched up by 10.40 points or 0.14% to 7,027.73.
Value turnover went up to P9.55 billion with 2.71 billion issues traded on Wednesday, an improvement from the P6.57 billion with 1.08 billion shares that switched hands on Tuesday.
Advancers beat decliners, 113 against 92, while 41 names closed unchanged.
Net foreign selling slowed to P356.05 million on Wednesday from the P709.34 million logged the previous day.
“The next immediate resistance lies at the 7,320 area as we see in the coming days if the 7,000 level holds,” Timson Securities’ Mr. Pangan said. — Keren Concepcion G. Valmonte
