PSEi returns to 6,000 level on foreign buying

psei returns to 6000 level on foreign buying - PSEi returns to 6,000 level on foreign buying

THE MAIN INDEX closed in positive territory on Thursday, breaching the 6,000 level, as investors remained hopeful of a shift to relaxed quarantine measures by next week.

The benchmark Philippine Stock Exchange index (PSEi) rose 102.78 points or 1.71% to 6,097.78 while the broader all shares index increased 39.76 points or 1.11% to 3,591.74.

Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a mobile phone message that the market gained after hints from the government of relaxed lockdown measures.

“The government said that the Philippines cannot afford to extend the modified enhanced community quarantine, particularly in Metro Manila unless the Congress would provide funds,” Ms. Alviar said.

“Less stringent lockdown measures give businesses hopes for recovery and this will also increase economic activities which is very beneficial to the economic growth,” she added.

For Timson Securities, Inc. Head of Online Trading and Trader Darren Blaine T. Pangan, the market closed in green territory due to last-minute bargain hunting by investors.

“The PSEi managed to end above the 6,000 area today, with market participants feeling optimistic that the currently enforced strict lockdown measures in Mega Manila may not be extended,” Mr. Pangan said in a mobile phone message on Thursday.

All sectoral indices closed higher on Thursday except for the services index, which fell 3.53 points or 0.24% to 1,453.99.

Financials improved 29.37 points or 2.6% to 1,156.47; property rose 59.30 points or 2.05% to 2,944.43; holding firms climbed 121.93 points or 1.97% to 6,288.1; mining and oil increased 66.25 points or 1.16% to 5,770.22; and industrials gained 28.06 points or 0.35% to 7,944.15.

Advancers outpaced decliners, 110 to 73, while 57 names ended unchanged.

Value turnover stood at P17.15 billion on Thursday with 1.35 billion issues switching hands, higher than P17.08 billion worth of 5.90 billion issues seen on Wednesday.

Foreigners turned buyers yesterday at a net P3.74 billion versus the P167.72 million in net outflows seen the previous day.

“The net foreign buying in the session helped the market to breach the 6,000 psychological resistance level,” Philstocks’ Ms. Alviar said.

“Foreigners turned net buyers today, after four straight days of being net sellers. We’ll see if the market stays above the 6,000 level until the end of the week,” Timson’s Mr. Pangan said on Thursday.

Meanwhile, the S&P 500 jumped on Wednesday but finished just short of its February record closing high, in a broad rally led by tech-related stocks, Reuters reported.

The index reached as high as 3,387.89. Its intraday record of 3,393.52 was also set on Feb. 19.

The Dow Jones Industrial Average rose 289.93 points or 1.05% to 27,976.84; the S&P 500 gained 46.66 points or 1.40% to 3,380.35; and the Nasdaq Composite added 229.42 points or 2.13% to 11,012.24.— R.M.D. Ochave with Reuters

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