Connect with us

Hi, what are you looking for?

Economy

PSE index rises on hopes of economic recovery

STOCKS continued to rise on Wednesday on investor optimism following the slower inflation print recorded last month.

The Philippine Stock Exchange index (PSEi) rose by 61.6 points or 0.93% to close at 6,651.71 on Wednesday, while the broader all shares index went up by 41.94 points or 1.04% to 4,044.94.

“Investors chose to be optimistic despite concerns of an extended lockdown due to surging COVID-19 (coronavirus disease 2019) cases,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said via e-mail.

“Inflation figures for the month of March, which came in lower than the month before, has given investors some hope that prices of commodities have started to stabilize, soothing fears of runaway inflation which would hurt the struggling economy further. The lack of selling prompted bargain hunters to look for opportunities in battered issues,” Mr. Mangun added.

Headline inflation was at 4.5% in March, the Philippine Statistics Authority reported on Tuesday, slowing from the 4.7% print in February but faster than the 2.5% seen in March last year.

Inflation averaged at 4.5% for the first quarter, beyond the central bank’s 2-4% annual target as well as its 4.2% forecast for 2021.

Meanwhile, Timson Securities, Inc. Trader Darren T. Pangan said the gains posted by the PSEi also reflected offshore developments.

“The market ended higher together with most Asian markets, on growing optimism over the world’s economic recovery, especially after the IMF (International Monetary Fund) lifted their outlook on their global growth forecast,” Mr. Pangan said in a Viber message.

Majority of the PSEi’s sectoral indices went up on Wednesday, except for mining and oil, which dropped by 53.09 points or 0.61% to 8,529.01.

Meanwhile, property gained 81.42 points or 2.52% to 3,312.83; holding firms improved by 43.71 points or 0.64% to finish at 6,800.23; industrials went up by 44.66 points or 0.5% to 8,935.95; services increased by 5.59 points or 0.39% to 1,439.22; and financials inched up by 5.3 points or 0.38% to close at 1,390.04.

Value turnover decreased to P6.05 billion on Wednesday with 3.41 billion shares switching hands, from the P5.85 billion with 2.42 billion issues traded on Tuesday.

Advancers outnumbered decliners, 147 against 57, while 46 names closed unchanged.

Net foreign selling climbed to P667.2 million on Wednesday from P551.88 million in the previous trading day.

“Thursday being the last trading day of the week, significant support may be drawn at the 6,400 area, while next resistance may be set at the 6,950 level,” Mr. Pangan said. Financial markets are closed on Friday in observance of the Day of Valor.

“PSEi is currently up 3.2% for the week, and although we may see some profit taking on the last trading day, it may still end with some gains for the week,” AAA Southeast Equities’ Mr. Mangun added. — Keren Concepcion G. Valmonte

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

Virgin Orbit’s next satellite launch will take place from the UK, following the success of the “Straight Up” mission, which lifted off from Mojave...

Investing

Post Office collection and cash delivery workers are to stage a one-day strike later this month in a dispute over pay. Members of the...

Investing

UK consumers cut back on credit card borrowing in May amid fears over rising interest rates and a slowing economy driven by a cost...

Investing

London City airport is seeking to overturn its Saturday flight ban and raise by 40% the limit on its passenger numbers. A local residents’...

Investing

The bank said that it was introducing a £1,200-a-year pay increase from August 1, which would start to show in next month’s pay packets....

Investing

Postmasters caught up in the Horizon IT scandal say that they are still being “left in the dark” about a compensation package after the...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.