Improved sentiment sends stock index past 5,900

THE local bourse started off the week in positive territory as improved sentiment prompted it to breach the 5,900 level.

The benchmark Philippine Stock Exchange Index (PSEi) gained 2.61 percent, or 150.76 points, to its intraday high of 5,935.85, while wider All Shares climbed 1.84 percent, or 64.28 points, to 3,558.01 on Monday.

Philstocks Financial Inc. research analyst Japhet Tantiangco said the market rallied as worries on the country’s economic and the coronavirus disease 2019 (Covid-19) pandemic situation were eased.

He explained the contracted July unemployment data of 10 percent from 17.7 percent in April somehow lessened macroeconomic concerns.

Pandemic woes, meanwhile, were tempered by news from the University of the PhilippinesOCTA’s research that there is a flattening of the curve of Covid-19 cases in the Philippines, Tantiangco said.

Despite the almost 3- percent climb, the main index continued to experience net foreign selling at P841.39 million, marking its 14th consecutive day of outflows.

Tantiangco added the sustainability of the rally is questionable as net value turnover was at P3.5 billion, weaker than the year-to-date

average of P5.9 billion.

AAA Equities Head of Research Chris Mangun attributed local shares’ rise to the substantial gains of large-cap property stocks Ayala Land Inc. ( ALI) and SM Prime Holdings (SMPH).

ALI landed among the top gainers on Monday as it rose by 6.38 percent, while SMPH improved by 3.22 percent.

Mangun projects the PSEi to continue its upward trend toward the end of the trading week.

Meanwhile, Wall Street declined on Friday as Dow Jones, S&P 500 and Nasdaq lost 0.56 percent, 0.81 percent and 1.27 percent, respectively.

Most Asian markets were also in the red as Tokyo shed 0.5 percent, Shanghai lost 1.87 percent, Hong Kong was down 0.51 percent, Jakarta slipped 0.18 percent, Bangkok declined by 0.3 percent and Ho Chi Minh tumbled by 1.47 percent, while Seoul climbed 0.67 percent and Singapore inched up by 0.06 percent.

All sectors in Manila ended in the green with the property index leading at 4.06 percent.

Total volume turnover was at 2.95 billion shares valued at P3.9 billion.

Gainers outpaced losers at 132 to 65, while 37 securities were unchanged.