PSEi gains 1% to rally back to 6,500

LAST-MINUTE buying enabled the local bourse to snap its losing streak and rebounded a few points above the 6,500 territory on Wednesday.

The bellwether Philippine Stock Exchange index (PSEi) climbed 1.01 percent or 65.42 points to its intraday high of 6,523.21, while the broader All Shares gained 0.78 percent or 30.81 points to close at 3,984.62.

AAA Equities head of research Christopher Mangun said last-minute buying prompted the main index to end at its intraday high.

He said the lack of selling pressure at current prices is a “sign that there is still some optimism and investors are willing to hold on to current positions despite the lack of positive catalysts.”

“This attracted buyers to come in and pick these shares after several days of losses,” Mangun continued.

Mangun noted that there was minimal trading at the start as sentiment remained subdued due to the pandemic situation in the country.

The market opened at 6,474.25 and fell to its intraday low of 6,453.26 before closing at its high for the day.

Mangun sees the sideways trend on low trading volumes persisting until there is a “significant change” in the country’s pandemic situation.

The Philippines saw 8,571 new coronavirus cases on Tuesday, bringing the tally up to 884,783.

The local sectors were all in the green with banks gaining the most at 1.81 percent.

Total volume turnover was at 1.73 billion shares valued at P4.68 billion.

Winners led losers, 111 to 81, while 55 securities were unchanged.