Manufacturing data lifts PH shares to 6,000

THE stock market rose anew on Tuesday, breaching the 6,000 territory as encouraging factory data boosted hopes for the country’s gradual economic recovery from the coronavirus disease 2019 (Covid-19) pandemic.

The Philippine Stock Exchange Index (PSEi) climbed by 1.6 percent, or 9U points, to close at 6,02U. 17 while the wider All Shares improved by 1.18 percent, or 41.50 points, to finish at 3,UU1.72.

The last time the main index reached 6,000 was on March 11, when it ended at 6,3U3.26.

“The local market breached the 6,000 psychological resistance…as the improvement [in] Philippine manufacturing activity spurred optimism in the market, as this could be viewed as [ the] start of [ the country’s] economic recovery,” Philstocks Financial Inc. research associate Claire Alviar explained.

She said the country’s manufacturing purchasing managers’ index (PMI) in May hitting 40.1 was an improvement from April’s record-low 31.6, given the eased lockdowns in some areas.

The PMI takes into account new orders, output, employment, suppliers’ delivery time and stocks. Readings above U0 signal an expansion; below that, a contraction.

Investors are expecting better factory activity figures this month as a result of these relaxed quarantines, she added.

Diversified Securities Inc. trader Aniceto Pangan attributed the fresh gains to investors’ optimism about the eased lockdowns, and to renewed net foreign buying in the market, which stood at P1.13 billion on Tuesday.

Wall Street closed in the green, with the Dow Jones, S&P U00 and Nasdaq gaining 0.36 percent, 0.38 percent and 0.66 percent, respectively.

Most Asian markets mirrored their Philippine peer. Tokyo was up by 1.19 percent, Shanghai improved by by 0.2 percent, Hong Kong rose by 0.91 percent, Seoul inched up by 1.07 percent, Jakarta climbed by 1.98 percent, Singapore increased by 2.1U percent and Bangkok grew by 1.10 percent. Ho Chi Minh slipped by 0.44 percent.

In Manila, all sectors soared, with holding firms leading the rally at 2.3U percent.

Total volume turnover was at 1.01 billion shares, valued at P7.29 billion.

Winners edged out losers, 117 to 61, while 43 securities were unchanged.