Connect with us

Hi, what are you looking for?

Economy

PHL stocks to rise further on eased restrictions

STOCKS are expected to climb this week after the government eased quarantine restrictions in Metro Manila and its nearby provinces of Bulacan, Cavite, Laguna, and Rizal on the back of lower daily coronavirus cases in the country.

The Philippine Stock Exchange index (PSEi) went up by 32.96 points or 0.52% to close at 6,269.36 on Friday. Meanwhile, the broader all shares index declined by 7.02 points or 0.18% to end at 3,850.98. Week on week, the PSEi gained 10.65 points from its 6,258.71 finish on May 7.

AAA Southeast Equities, Inc. Research Head Christopher John J. Mangun said Friday was “the most interesting trading day due to the increased volatility” in the market. He said bargain hunters held off as they were expecting the weakness of the market after restrictions were extended until the end of the month.

“Buyers waited until selling pressure had subsided and prices were significantly lower, which coincidentally was right before trading ended,” Mr. Mangun said via e-mail on Friday. “Dismal economic figures, which were released [last] week, also contributed to the deterioration of the sentiment.”

President Rodrigo R. Duterte approved the recommendation of an interagency task force to place National Capital Region and the provinces of Bulacan, Cavite, Laguna and Rizal under a general community quarantine with heightened restrictions from May 15 to 31, presidential spokesman Herminio L. Roque, Jr. said in a statement on Thursday night.

Meanwhile, the country’s gross domestic product (GDP) fell by an annual 4.2% in the quarter ending March. This marked five consecutive quarters of GDP decline, marking the longest recession since the Marcos era.

“With the further easing of restrictions, we may see the market to recover somehow but it will continue its [volatility] after the release of strong US inflation figures last week,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message on Saturday.

“Any [sustained] inflationary pressures from the US will affect the global market including the Philippines,” Mr. Pangan added.

The US producer price index (PPI) rose 0.6% in April after surging 1.0% in March, Reuters reported. In the 12 months through April, the PPI shot up 6.2%. That was the biggest year-on-year rise since the series was revamped in 2010 and followed a 4.2% jump in March.

Meanwhile, AAA Southeast Equities Mr. Mangun said the recent downward trend of the PSEi may continue “until investors gain confidence that the economy would roar back to life.”

“[It] will only happen once the public health threat has been neutralized, mainly by developing herd immunity through mass vaccination. The PSEi’s next major support is at 6,000 which it could test in the coming trading days,” he said.

“Despite the lower prices, we encourage investors to start taking positions as the potential long-term upside of prices outweigh the potential downside risks in the short term,” Mr. Mangun added. — Keren Concepcion G. Valmonte with Reuters

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 and our affiliates. Remember that you can opt-out any time, we hate spam too!

Latest

Top News

Intensifying focus on worker safety across medical, chemical, automotive, and oil & gas sectors is a major reason for the burgeoning nitrile gloves industry,...

Economy

The government expects to finish 29 flagship infrastructure projects worth P238.48 billion before President Rodrigo R. Duterte’s term ends in 2022. It has added...

Economy

The Philippine central bank raised its balance of payment (BoP) projection for this year on expectations of an improved economic landscape here and overseas....

Economy

The Philippine central bank raised P100 billion from its auction of short-term securities on Friday even as rates rose on hints by the US...

Economy

The country’s outstanding foreign debt fell by 1.5% or $1.4 billion to $97 billion at the end of March from end-December, after the National...

Economy

The Department of Health (DoH) reported 6,833 coronavirus infections on Friday, bringing the total to 1.35 million. The death toll rose by 110 to...

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...

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...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Economy

THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

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.

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 and our affiliates. Remember that you can opt-out any time, we hate spam too!