Shares rise from MECQ slump on bargain hunting

THE stock market on Tuesday advanced from Monday’s lockdown-prompted retreat to join its regional counterparts.

The benchmark Philippine Stock Exchange index ( PSEi) climbed by 1.04 percent or 59.58 points to close at 5,775.50, while the wider All Shares inched up by 0.84 percent or 28.51 points to finish at 3,426.97.

After being oversold on news of stricter quarantine restrictions, the bourse “rebounded and moved up today in tandem with most of the regional markets on bargain hunting,” Diversified Securities Inc. trader Aniceto Pangan explained.

The rebound comes after local stocks opened the week with a 3.59-percent plunge after the government announced that Metro Manila and the provinces of Laguna, Cavite, Rizal and Bulacan would again be placed under modified enhanced community quarantine ( MECQ) from August 4 to 18. The capital was last placed under MECQ in the second half of May.

The tighter quarantine was imposed after dozens of medical groups urged the government to call a timeout to rethink and recalibrate their coronavirus response strategies. They did so amid the swelling number of confirmed coronavirus cases in the country, which surpassed 112,000 on Tuesday.

AAA Equities Head of Research Christopher Mangun said the market recovered as investors were optimistic that businesses were more prepared to operate efficiently despite the MECQ.

“Selling pressure was lighter today (Tuesday), and yesterday’s (Monday’s) move was seen as a knee-jerk response to the reimposition of the [stricter] lockdown,” he explained.

The government heeding medical frontliners’ call for tigher quarantine measures was seen as “renewed cooperation between the government and the people,” Mangun said.

Wall Street ended in the positive territory overnight, with the Dow Jones, S&P 500 and Nasdaq gaining 0.89 percent, 0.72 percent and 1.47 percent, respectively.

Asian markets also rallied. Tokyo was up 1.7 percent, Shanghai inched up by 0.11 percent, Hong Kong climbed by 2.01 percent, Seoul gained 1.29 percent, Jakarta grew by 1.31 percent, Singapore

rose by 1.3 percent, Bangkok improved by 0.94 percent and Ho Chi Minh increased by 1.59 percent.

In Manila, all sectors jumped, with mining and oil leading at 4.03 percent.

Total volume turnover was at 1.59 billion shares, valued at P5.74 billion.

Gainers edged out losers, 136 to 52, while 46 securities were unchanged.