PSEI BREACHES 5,600 LEVEL ON REOPENING HOPES

THE stock market extended its gains on Thursday as optimism over the reopening of economies worldwide lifted it to the 5,600 territory.

The benchmark Philippine Stock Exchange Index ( PSEi) gained

0.4 percent or 22.53 points to end at 5,604.49, while the wider All Shares inched up by 0.10 percent or 3.49 points to close at 3,374.96.

Philstocks Financial Inc. research associate Japhet Tantiangco said the bourse took cues from Wall Street and rose on optimism from the reopening of global economies from the lockdowns imposed to contain the spread of the coronavirus disease 2019.

Meanwhile, Regina Capital Development Corp. head of sales Luis Limlingan said “Philippine shares rose, building on [ Wednesday’s] gains, as traders increased bets of an economic recovery with more states easing stay-at-home orders.”

Tantiangco said the market has been “under consolidation as investors continue to weigh the dilemma amid the present circumstances.”

“The easing of economic restrictions, including [ those] in the Philippines, sparks hope for the economy, but this comes with worries as [this move] raises the risk of” a spike in coronavirus cases, he explained.

According to him, there is little CONfiDENCE IN THE MARKET AS INVEStors booked gains quickly.

“Most [of them] are staying on the sidelines, waiting for the clouds to dissipate, [which explains] the anemic value turnover we’ve been seeing lately,” Tantiangco said.

Wall Street rallied, with the Dow Jones, S&P 500 and Nasdaq climbing by 1.52 percent, 1.67 percent and 2.08 percent, respectively.

Most Asian markets ended in the red. Tokyo shed 0.21 percent, Shanghai slipped by 0.55 percent, Hong Kong was down by 0.57 percent, Jakarta slid by 0.06 percent and Singapore lost 0.13 percent.

Seoul Seoul improved by 0.44 percent, Thailand inched up by 0.26 percent and Ho Chi Minh climbed by 1.15 percent.

In Manila, sectors were mixed, with holding firms gaining the most at 1.35 percent. Financials lost the biggest at 0.99 percent.

Total volume turnover was at 450.18 million shares, valued at P4.73 billion.

Losers still edged out winners, 86 to 75, while 57 securities were unchanged.