Stocks rebound as lockdown in metro relaxed

stocks rebound as lockdown in metro relaxed - Stocks rebound as lockdown in metro relaxed

LOCAL SHARES closed in positive territory at the end of Tuesday’s session as investor sentiment improved on news of the return of Metro Manila and nearby provinces to relaxed lockdown protocols starting Aug. 19.

The bellwether Philippine Stock Exchange index (PSEi) rose 87.67 points or 1.44% to 6,156.45 while the broader all shares index climbed 41.44 points or 1.15% to 3,635.78.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message that the market was boosted by positive investor sentiment after the decision of the government to shift Metro Manila and other neighboring areas to looser quarantine measures.

“Market sentiment was boosted after President Rodrigo R. Duterte approved the Inter-Agency Task Force (IATF) recommendation of placing the National Capital Region, Bulacan, Laguna, Cavite, and Rizal under general community quarantine, which would allow most businesses to resume and restaurants to offer dine-in services again,” Mr. Limlingan said.

Mr. Duterte announced on Monday the change in lockdown protocols despite rising coronavirus disease 2019 (COVID-19) cases in the country.

Meanwhile, Timson Securities, Inc. Head of Online Trading and Trader Darren Blaine T. Pangan said in a mobile phone message that the market improved after a strong showing from holding firms on Tuesday, led by SM Investments Corp. (SM), JG Summit Holdings, Inc. (JGS) and Aboitiz Equity Ventures, Inc. (AEV), coupled by upbeat market sentiment after the change in lockdown protocols.

Shares of SM climbed 3.4% or P30 to close at P910 apiece on Tuesday, while stocks of JGS rose 2.5% or P1.60 to close at P65.60 each and those of AEV improved 2.8% or P1.40 to end at P51.60 per share.

All sectoral indices ended in positive territory on Tuesday. Holding firms rose 142.36 points or 2.27% to 6,401.47; services climbed 18.05 points or 1.26% to 1,450.06; mining and oil improved 67.42 points or 1.15% to 5,911.30; financials climbed 11.22 points or 0.97% to 1,162.91  property increased 21.28 points or 0.71% to 2,981.05; and industrials went up 43.96 points or 0.55% to 7,928.24.

Advancers bested decliners, 117 to 71, while 43 names ended unchanged.

Value turnover stood at P5.96 billion on Tuesday with 9.76 billion issues switching hands, up from the previous day’s P5.76 billion with 3.07 billion issues.

Net foreign selling amounted to P229.36 million at the end of Tuesday’s session versus Monday’s net outflows worth P489.04 million.

“As we progress through the shortened trading week, nearest resistance may be drawn at the 6,350-6,400 area, while immediate support is at 6,000,” Timson’s Mr. Pangan said. — R.M.D. Ochave

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