By Denise A. Valdez, Senior Reporter
LOCAL SHARES bounced back on Monday after dismal trading last week, lifted by optimism on the relaxation of lockdown rules and hopes that the national budget for 2021 will be passed on time.
The 30-member Philippine Stock Exchange index (PSEi) rose 120.79 points or 2.04% to end the session at 6,019.26. The broader all shares index likewise expanded 59.12 points or 1.65% to close at 3,641.03.
The PSEi’s growth on Monday is its largest movement since Sept. 7, when it grew 150.76 points or 2.61% to close at 5,935.85.
“The PSEi started the week with a substantial rally as investors got a boost of confidence from the easing of restrictive quarantine measures,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an email.
The government will start allowing non-essential outbound travel by Oct. 21 in an effort to boost the economy after seven months of lockdown. It is also encouraging people to start going out while maintaining safety protocols, hoping to strike a balance between containing the spread of the coronavirus and fuelling consumer spending.
“Concerns of a plateau in the pace of the economy’s recovery have been diminished by the recent developments. Blue chip mall operators Ayala Land, Inc. and SM Prime Holdings, Inc. also got a boost after they were given the go signal to hold sales and other marketing activities which will increase foot traffic,” Mr. Mangun said.
“(Monday’s) gains make the PSEi one of the best performers in Asia. It may continue higher towards its next resistance of 6,165 before the end of the week,” he added.
“I think the market reacted positively on the passing of the 2021 national budget in the lower house, and thus the odds of passing of the budget in time would be high,” Piper Chaucer E. Tan, research associate at Philstocks Financial, Inc., said in a text message.
All sectoral indices closed in green territory: mining and oil jumped 318.43 points or 4.30% to 7,716.64; holding firms grew 183.08 points or 3.03% to 6,218.50; property increased 61.33 points or 2.21% to 2,836.59; industrials improved 107.42 points or 1.34% to 8,123.98; financials added 7.72 points or 0.65% to 1,185.44; and services climbed 7.91 points or 0.54% to 1,449.96.
Value turnover stood at P5.44 billion on Monday, slightly lower than Friday’s P5.64 billion. Some 2.48 billion issues switched hands.
Advancers outnumbered decliners, 125 against 76, while 46 names ended unchanged.
Overseas investors have been posting net outflows for 27 straight days, despite net selling declining to P614.46 million on Monday from P972.17 million in the last session.
“Foreign funds are still exiting… The locals are the main participants for the rally for the market,” Mr. Tan said.