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Stocks rise ahead of G7 call on virus response

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By Denise A. Valdez, Reporter

THE MAIN INDEX closed higher on Tuesday as investors across the world anticipate new measures from intergovernmental economic organization Group of Seven (G7) to address the coronavirus disease 2019 (COVID-19) outbreak.

The 30-member Philippine Stock Exchange index (PSEi) picked up 41.26 points or 0.61% to end 6,790.54 on Tuesday, while the broader all shares index added 18.56 points or 0.45% to 4,062.25.

“Local and regional (stocks) recovered as the G7 leaders are planning on leading a global teleconference tonight to discuss actions against the coronavirus outbreak,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message yesterday.

The G7 — comprised of advanced economies Canada, France, Germany, Italy, Japan, United Kingdom and United States — are taking a more active role in addressing the threat on global markets and economies due to COVID-19 with a conference call scheduled at 8 p.m. last night, Philippine time.

Asian markets ended mixed on Tuesday. Japan’s Nikkei 225 and Topix indices lost 1.22% and 1.36%, respectively, and Hong Kong’s Hang Seng index slipped 0.03%.

But China’s Shanghai SE Composite and Shenzhen CSI 300 indices gained 0.74% and 0.53%, respectively, and South Korea’s Kospi index advanced 0.44%.

AAA Southeast Equities, Inc. Research Head Christopher John Mangun and Philstocks Financial, Inc. Research Associate Claire T. Alviar said the rise in Asian equities was driven by the upswing in Wall Street on Monday. The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite indices grew 5.09%, 4.60% and 4.49%, respectively.

Sectoral indices at the PSE were mostly gainers yesterday: financials by 22.63 points or 1.43% to 1,604.12; holding firms by 49.04 points or 0.74% to 6,625.54; property by 18.36 points or 0.49% to 3,707.18; and mining and oil by 16.38 points or 0.25% to 6,359.53.

Closing in red territory were industrials, which lost 37.78 points or 0.46% to 8,122.16; and services, which shed 0.37 point or 0.02% to 1,345.49.

Despite yesterday’s gains, Philstocks Financial’s Ms. Alviar said the rally might be short-lived, noting value turnover stood at P5.83 billion which was “weaker compared with the past sessions of around P8 billion.”

“This shows that most investors are still on the sidelines worrying the impact of the virus in the Philippine economic growth,” Ms. Alviar said in a text message.

But for AAA Southeast Equities’ Mr. Mangun, it appears the worst is over for the PSEi and investors are regaining confidence in the market. “If the main index ends the week above this support line, we may see a reversal and see it start going higher,” he said.

Advancers outpaced decliners, 108 against 82, while 46 names closed the session unchanged.

Net foreign selling dropped to P915.46 million yesterday from Monday’s P1.53 billion.





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