PSEi rebounds as Congress ratifies 2021 budget

By Revin Mikhael D. Ochave, Reporter

SHARES recovered on Thursday as market sentiment improved on the back of progress in the country’s 2021 national budget.

The 30-member Philippine Stock Exchange index (PSEi) climbed 51.77 points or 0.72% to end at 7,154.43, while the broader all shares index increased 17.79 points or 0.41% to close at 4,270.92.

Philstocks Financial, Inc. Research Associate Claire T. Alviar said the market improved as investor sentiment was lifted after Congress ratified the country’s national budget for 2021.

“It erases uncertainties of the re-enacted budget for next year and gives more hope for gradual economic recovery,” Ms. Alviar said in a mobile phone message.

The Bicameral Conference Committee on Wednesday approved next year’s P4.5-trillion national budget, which is aimed at supporting economic recovery after a record recession due to the coronavirus pandemic.

The bicameral conference committee report on the General Appropriations Act of 2021 was ratified by the House of Representatives and the Senate on Wednesday evening. The budget bill will then be sent to President Rodrigo R. Duterte for his signature before Christmas.

Ms. Alviar added that the PSEi also rose on the back the gains logged by market heavyweights such as Ayala Land, Inc. (ALI), Ayala Corp. (AC), SM Prime Holdings, Inc. (SMPH), and JG Summit Holdings, Inc. (JGS).

ALI shares improved 3.49% or P1.35 to end at P40.05 per share; AC shares increased 2.44% or P20 to close at P840 apiece; SMPH shares climbed 1.32% or 50 centavos to close at P38.40 per share; and JGS shares rose 0.81% or 55 centavos to end at P68.55 per piece. 

“The market ended higher as market participants continue to feel optimistic over the government’s push to further reopen the economy,” Timson Securities, Inc. Head of Online Trading and Trader Darren Blaine T. Pangan said in a mobile phone message.

Sectoral indices at the PSE were mixed at the close of Thursday’s trading.

Property improved 62.02 points or 1.74% to 3,620.62; holding firms went up 55.85 points or 0.76% to 7,369.59; and services rose 7.72 points or 0.5% to 1,529.74.

Meanwhile, industrials dropped 45.33 points or 0.48% to 9,398.45; financials retreated 3.64 points or 0.24% to 1,474.24; and mining and oil shrank 19.52 points or 0.21% to 9,139.48.

Advancers outpaced decliners, 121 versus 108, while 41 names ended unchanged.

Value turnover on Thursday stood at P7.64 billion with some 150.03 billion issues, weaker than Wednesday’s P9.88 billion with 99.2 billion issues.

Net foreign selling amounted to P153.84 million, lower than previous session’s net outflows worth P685.74 million.

“Support may be placed at the 7,000 area while nearest resistance is at the 7,210 level,” Mr. Pangan said.