PSEi back at 6,000 level on positive sentiment

By Denise A. Valdez, Reporter

THE MAIN INDEX returned to the 6,000 level on Tuesday as investors sustained their optimism over the Philippine economy’s revival.

The benchmark Philippine Stock Exchange index (PSEi) closed yesterday’s trading session at 6,025.17, up 95 points or 1.60% from a day ago. The broader all shares index gained 41.50 points or 1.18% to close at 3,551.72.

“The PSEi broke through the 6,000 level after retracing modest losses earlier in the session, as the potential for an economic rebound overshadowed strife in regional economies that has sparked chaos and curfews especially in the United States,” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a mobile message.

The PSEi’s finish yesterday is its best since March when the world was at the height of announcing lockdowns due to the coronavirus disease 2019 (COVID-19) pandemic. From ending at 6,353.26 on March 11, the main index fell to 5,736.27 on March 12 and hit a historic low of 4,623.42 on March 19.

With the Philippine government continuing to favor a relaxed lockdown to support the economy’s recovery, investors flocked to the local bourse with optimism, opposite of the distress in other countries amid the lingering effects of the pandemic.

“Investors also monitored Sino-American trade tensions and efforts in the US, and much of the world, to overcome the COVID-19 pandemic… The (Chinese) government told major state-run agricultural companies to pause purchases of some goods including soybeans as it evaluates the escalation of tensions with the US over Hong Kong,” Mr. Limlingan said.

Diversified Securities, Inc. Equity Trader Aniceto K. Pangan noted the same push from foreign investors. After nearly 50 days of recording net outflows, foreign investors have been net buyers for the third straight day on Tuesday, increasing net inflows to P1.13 billion from P268.58 million a day ago.

“With the Philippines’ fundamentals intact, it’s expected to be among the economies around the world to be resilient under these circumstances and make an economic rebound thereafter,” Mr. Pangan said via text.

All sectoral indices closed the session with gains: holding firms rose 141.38 points or 2.34% to 6,161.15; property improved 49.95 points or 1.68% to 3,022.73; industrials picked up 94.31 points or 1.25% to 7,590.34; financials added 13.18 points or 1.1% to 1,205.48; mining and oil increased 29.14 points or 0.65% to 4,466.71; and services climbed 6.53 points or 0.48% to 1,359.64.

Value turnover grew to P7.29 billion on Tuesday from P6.98 billion the previous day. Some 1.01 billion issues switched hands.

Advancers outnumbered decliners, 117 against 61, while 43 names ended unchanged.