Stocks extend rally amid overseas markets’ gains

LOCAL shares continued to advance for a second straight day on Wednesday as investors looked for bargains and stock markets overseas also notched gains.

The bellwether Philippine Stock Exchange index ( PSEi) added 1.006 percent or 58.08 points to end at 5,833.58, while the broader All Shares climbed by 0.86 percent or 29.32 points to close at 3,456.29.

Philstocks Financial Inc. research associate Japhet Tantiangco credited bargain hunting and positive cues from Wall Street for the bourse’s improved performance.

He noted, however, that sustaining the advance could be challenging, as the market continues to operate under “tepid” trading.

Net value turnover hit P5.03 billion on Wednesday, below the yearto-date average of P5.79 billion.

According to Tantiangco, this shows that many investors remained on the sidelines.

Net foreign outflows, meanwhile, reached P257.5 million.

The Philstocks analyst said net foreign selling was already on a

This July 21, 2020 file photo shows part of the Philippine Stock Exchange building in Bonifacio Global City, Taguig City.

seven-day streak, averaging P688.2 million a day.

AAA Equities Head of Research Christopher Mangun said the PSEi gained after investors realized “that the current MECQ (modified enhanced community quarantine) is less restrictive [on] business than what was expected.”

“Most businesses remain operational amid the lockdown. Public transport has been limited to inhibit non-essential travel, but essential goods and businesses remain functional,” he explained.

He also said selling pressure picked up toward the close of trading as investors remained cautious ahead of the release of secondquarter gross domestic product data on Thursday.

Wall Street was in the green overnight, with the Dow Jones, S&P 500 and Nasdaq rising by 0.62 percent, 0.36 percent and 0.35 percent, respectively.

Most Asian markets also advanced, with Shanghai inching up by 0.17 percent, Hong Kong gaining 0.86 percent, Seoul climbing

by 1.4 percent, Jakarta rising by 1 percent, Singapore adding 1.28 percent, Bangkok rising by 0.56 percent and Ho Chi Minh jumping by 1.24 percent. Tokyo shaved off 0.26 percent,

In Manila, all sectors closed up, led by mining and oil at 3.32 percent.

Total volume turnover was at 2.04 billion shares, valued at P5.38 billion.

Winners outpaced losers, 128 to 75, while 27 securities were unchanged.