PSEi closes at strongest level since June

IMPROVED corporate earnings and the continued decline in new coronavirus disease 2019 (Covid-19) cases helped the stock market surpass the 6,400 mark on Friday.

The benchmark Philippine Stock Exchange index ( PSEi) jumped by 2.2 percent or 139.43 points to close at its intraday high of 6,484.06 — the highest since its 6,476.24 finish on June 11 — while the wider All Shares rose by 1.88 percent or 71.2 points to finish at 3,859.95.

Philstocks Financial Inc. research associate Piper Chaucer Tan credited Friday’s surge to investors looking at the slowdown in daily Covid- 19 infections and firms’ positive financial results that began emerging this week.

As of Friday, the number of confirmed Covid-19 cases increased by 1,923 to 365,799, of which 46,193 are active, according to a Department of Health tally. Of the total, 312,691 have recovered and 6,915 did not.

The US Food and Drug Administration’s approval of Gilead Sciences Inc.’s antiviral drug remdesivir for use in treating hospitalized coronavirus patients and the US markets’ newest gains also bolstered investor optimism, he said.

The Dow Jones, S&P 500 and Nasdaq added 0.54 percent, 0.52 percent and 0.19 percent, respectively, overnight despite no apparent breakthrough in negotiations on long-awaited stimulus to help the American economy recover from its Covid-19 downturn.

Tan noted that the net value turnover of P8 billion exceeded the year-to-date average of P6 billion to P7 billion.

The bourse also recorded a three- day foreign inflow streak as it posted net foreign buying of P795.65 million.

“It means that both locals and foreign investors are participating [in] the rally of the market. We may see some hiccups…next week, but the support for the market will be at [the] 6,000 level and its resistance is at 6,580,” the analyst said.

Regina Capital Development Corp. Luis Limlingan also attributed the market’s latest rally to the latest set of positive corporate earnings and hopes of progress in US stimulus talks.

“Another value stock-led rally pushed the PSEi solidly into the green to close the week as positive earnings reports [ from

Universal Robina Corp. and Bank of the Philippine Islands] and optimism about US stimulus offset concerns about rising virus cases,” he said.

Most local sectors ended in the green, with holding firms rising the highest at 3.25 percent. Services lost 0.17 percent.

Total volume turnover was at 1.38 billion shares, valued at P8.5 billion.

Gainers outpaced decliners, 129 to 81, while 48 securities were unchanged.