The stock market returned to the 7,000 territory on Wednesday on investors’ continued optimism that the Philippine economy would recover before the year ends.
The benchmark Philippine Stock Exchange index (PSEi) rose by 1.33 percent or 92.64 points to end at its intraday high of 7,051.78, while the wider All Shares gained 1.002 percent or 41.13 points to close at 4,144.87.
AAA Equities Head of Research Christopher Mangun said investors were still upbeat that the economy would see a “massive rebound” in the fourth quarter.
“Several issues are now at their 2020 highs or higher as the sentiment on equities continues to improve,” he added.
Mangun also said Wednesday’s rally was led by the gains in conglomerates and banks.
Second-liners also saw “a lot of action,” he added, including Dito CME Holdings Corp., which climbed by 3.81 percent, driven by investors’ cheering the progress of the country’s third telco.
MerryMart Consumer Corp. and AC Energy Philippines also closed in the green at 9.57 percent and 8.35 percent, respectively.
“We may see some profit-taking toward the end of the week and maintain our forecast that the trend will continue sideways,” Mangun said.
Regina Capital Development Corp. Managing Director Luis Limlingan said investors returned to local shares following reports of “disappointing” US economic data and the growing number of coronavirus disease 2019 (Covid-19) cases globally.
“US stocks took a breather on Tuesday as pharmaceutical shares declined sharply, as well as disappointing economic data,” Limlingan explained.
On Wall Street, the Dow Jones, S&P 500 and Nasdaq slipped overnight by 0.56 percent, 0.48 percent and 0.21 percent, respectively.
US retail sales increased by 0.3 percent in October and core retail sales grew by 0.1 percent, both below consensus expectations. Import prices also dipped by 0.1 percent in October, also below expectations.
As of Wednesday, the number of Covid-19 infections worldwide reached more than 55.6 million, of which 11.3 are in the United States, 8.9 million in India and 5.9 million in Brazil, according to the latest Johns Hopkins University tally. Of the total, 1.33 million have succumbed to the disease.
Most local sectors climbed, led by holding firms at 1.94 percent and financials at 1.92 percent. Mining and oil dropped by 1.09 percent.
Total volume turnover was at 12.34 billion shares, valued at P10.93 billion.
Advancers outpaced decliners, 126 to 86, while 55 securities were unchanged.