Stocks resume uptick amid SONA developments

The benchmark Philippine Stock Exchange index (PSEi) gained 70.22 points, or 0.95 percent, to end at 7,447.02 as investors cheered President Duterte’s State of the Nation Address (SONA) and ignored the power grab that took place yesterday after it ended peacefully after the SONA.

Likewise, the broader All Shares index gained 31.91 points, or 0.71 percent, to close at a high of 4,505.23.

Most of the sectoral indices also ended in positive territory with only one — the financials index — closing in negative territory.

Those that ended in the green booked significant gains including the mining and oil index despite Duterte’s fresh round of tirades against the sector. He reiterated previous statements that he wants to ban open-pit mining. He also told industry players to repair mismanaged natural resources.

Holding firms were also among the biggest gainers as Duterte spared listed conglomerates or the taipans that own them from any fresh attacks.

Despite optimism during yesterday’s session, total value turnover was thin at P4.431 billion even as market breadth was positive, 107 to 92 while 43 issues were unchanged.

Jose Perez of Papa Securities said the SONA may have cleared some of the hesitation felt last week.

In his SONA, Duterte said there would be more taxes as he rallied lawmakers support of TRAIN 2.

“The PSEi remained strong the entire day and was also bought up at the close to end 70.22 points higher to end at its high of 7,447.02. A weak net foreign selling figure of only P48 million may have enabled the index’s move today. The SONA being over may have also cleared some of the hesitation felt last week,” Perez said.