THE benchmark index climbed on Monday as investors digested data showing an improved unemployment rate in the country and after the government said it will not be imposing strict lockdowns amid the surge in coronavirus disease 2019 (COVID-19) infections.

The Philippine Stock Exchange index (PSEi) gained 129.56 points or 1.84% to close at 7,140.67 on Monday, while the broader all shares index improved 54.27 points or 1.44% to finish at 3,799.88.

“The local bourse finished higher amid investors feeling optimistic over the country’s unemployment report for the month of November,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a separate Viber message.

“However, traders may still be remaining cautiously optimistic while monitoring the coronavirus cases in the country,” he added.

The Philippine Statistics Authority’s labor force survey showed the country’s unemployment rate dropped to 6.5% in November from the 7.4% logged in October. This is after the government placed Metro Manila under Alert Level 2 beginning November, which allowed more businesses to reopen with the eased restrictions.

However, COVID-19 cases are picking up again, with the Health department reporting 33,169 new infections on Monday.

“Philippine stocks rallied sharply at the start of the week taking their cue from the government pronouncement that there is no need yet to place the capital under Alert Level 4 even if the region’s healthcare utilization rate is nearing moderate risk level amid the rising pandemic cases,” Papa Securities Corp. Equities Strategist Manny P. Cruz said in a text message.

“Note that last week’s decline was on account of anticipation for a tighter quarantine status and investors took the recent development as positive for local stocks,” Mr. Cruz said.

All sectoral indices posted gains on Monday, led by property, which added 85.38 points or 2.78% to close at 3,154.13.

Financials went up by 43.59 points or 2.75% to end at 1,625.73; industrials climbed 171 points or 1.69% to 10,281.81; mining and oil picked up 143.92 points or 1.51% to 9,668.82; holding firms improved by 98.32 points or 1.43% to close at 6,944.12; and services gained 16.12 points or 0.83% to finish at 1,957.89.

Value turnover declined to P5.25 billion with 745.53 million shares switching hands on Monday, lower than the P5.85 billion with 647.43 billion issues traded on Friday.

Advancers outnumbered decliners, 116 against 64, with 53 names closed unchanged.

Net foreign selling declined to P118.04 million from the P284.75 million logged the previous trading day.

“[The PSEi’s] support remains at 6,940, while 7,454.50 seems to be where resistance may be drawn,” Timson Securities’ Mr. Pangan said. — Keren Concepcion G. Valmonte

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