PSEi rises to 5,400 level to open Q2

THE stock market continued its winning streak for the second consecutive day on Wednesday — the start of the second quarter of 2020 — but analysts do not expect it sustaining the rally for long.

The benchmark Philippine Stock Exchange index ( PSEi) increased by 1.64 percent or 87.29 points to close at 5,408.52, while wider All Shares rose by 1.27 percent or 41.04 points to end at 3,278.81.

Despite the main index finishing in the green, Philstocks Financial Inc. Research Associate Japhet Tantiangco said “other numbers…are showing weakness in the market’s climb.”

“Net value turnover ( net of block sales) today stood at P5.31 billion, [ which is] below the year- to- date average of P5.93 billion. This shows [ a] lack of conviction in today’s trading,” he explained.

“Looking at the overall market, the gap between the gainers and losers was narrow,” Tantiangco said. “[ T] his shows that selling pressures are starting to creep up again.”

According to him, the country’s economic outlook would remain gloomy, as “Philippine manufacturing PMI (Purchasing Managers’ Index) data just came out, posting a sharp fall at 39.7.”

“The dim outlook could weigh on the market in the upcoming days. Thus, it is advised to remain cautious with our trades,” Tantiangco said.

Regina Capital Development Corp. head of sales Luis Limlingan said “Philippine shares started the second quarter on an optimistic note as investors are hoping the market has bottomed, with many strategists expecting a V- shaped recovery, a sharp drop in GDP [ gross domestic product] in the second quarter and a swift snapback in the third quarter.”

Wall Street slipped, with the Dow Jones, S& P 500 and Nasdaq losing 1.84 percent, 1.6 percent and 0.95 percent, respectively.

Most Asian markets mirrored their US peers. Tokyo fell by 4.5 percent, Shanghai slipped by 0.57 percent, Hong Kong declined by 2.38 percent, Seoul was down by 3.94 percent, Jakarta shed 1.78 percent, Singapore decreased by 1.7 percent and Bangkok lost 1.05 percent. Ho Chi Minh jumped by 2.83 percent.

In Manila, all sectors ended in the green, with services leading at 2.27 percent.

Volume turnover was at 498.18 million, valued at P5.58 billion.

Advancers led decliners, 99 to 87, with 41 changed.