Stocks rise on proposed changes to Constitution

stocks rise on proposed changes to constitution - Stocks rise on proposed changes to Constitution

By Revin Mikhael D. Ochave, Reporter

STOCKS ended in positive territory on Monday as the market welcomed a proposal to amend economic provisions of the 1987 Philippine Constitution to attract more foreign investments into the country.

The bellwether Philippine Stock Exchange index (PSEi) improved 14.91 points or 0.2% to close at 7,304.79 yesterday, while the broader all shares index rose 19.06 points or 0.43% to end at 4,373.33.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a mobile phone message that the local market improved as investor sentiment got a lift from discussions in the House of Representatives on easing economic restrictions in the Constitution.

“The market climbed by as high as 1.96% to 7,432.40 within the trading day. However, profit taking followed and trimmed Monday’s gains,” Mr. Tantiangco said.

House Speaker Lord Allan Q. Velasco on Sunday proposed that amendments should be made to the “restrictive” economic provisions of the Constitution.

Mr. Velasco said committee deliberations will open this week on the proposed Resolution of Both Houses No. 2 that wishes to add the phrase “unless otherwise provided by law” to several sections of the Constitution.

He added that the phrase will allow Congress to pass laws to open up the economy to foreign investors and assist in the country’s recovery from the pandemic.

Timson Securities, Inc. Head of Online Trading Darren Blaine T. Pangan said in a mobile phone message that the market improved as investors remained cautiously optimistic and continued to monitor local coronavirus disease 2019 (COVID-19) cases.

The Department of Health reported 2,052 new COVID-19 cases on Monday, which brought the country’s tally to 489,736.

Majority of sectoral indices closed higher on Monday except for mining and oil, which dropped 116.16 points or 1.16% to 9,873.43, and property, which fell 20.92 points or 0.55% to 3,764.10.

Meanwhile, industrials went up 114.52 points or 1.19% to 9,706.67; services climbed 16.81 points or 1.09% to 1,557.09; financials increased 2.75 points or 0.18% to 1,490.12; and holding firms gained 10.54 points or 0.14% to 7,432.99.

Advancers bested decliners, 129 against 94, while 46 names ended unchanged.

Value turnover on Monday stood at P11.52 billion with 19.98 billion issues switching hands, higher than the P11.06 billion with 25.13 billion issues logged during the previous trading session.

Net foreign buying reached P209.73 million, lower than the net inflows worth P223.78 million seen on Friday.

“If 7,300 holds, 7,500 seems to be the next resistance area. Otherwise, if the market doesn’t hold the 7,300 level, 7,000 may be considered the next support area,” Timson Securities’ Mr. Pangan said.

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