PSEi rallies 2.80% as markets await outcome of US presidential race

Share prices on the Philippine Stock Exchange continued their winning streak for four straight sessions on Thursday as they tracked the overnight rally on Wall Street amid the wait-and-see mode on the outcome of the US presidential election.

The local stock barometer PSEi gained 180.72 points or 2.80% to 6,644.77 at the closing bell. The broader All Shares increased by 70.70 points or 1.84% to 3,919.31.

“The PSEi surged 2.80% following the extended rally of the US markets overnight while investors accumulate shares amid recovery hopes,” Philstocks Financial research associate Claire Alviar said.

“Overseas markets, US and Asian, are rising as they wait for the US election results. So far, Joe Biden is in the lead. Some people are speculating that it would be good for the Asian Markets, including the Philippines, if Biden wins since there could be a resolution to the US-China trade disputes,” Alviar said.

On Wall Street, S&P 500 rose 2%, Dow Jones by 1% and Nasdaq 2.5% overnight as a too-close-to-call US presidential election left traders betting on a divided Senate that would keep stimulus flowing but hold tax rises and regulation in check. 

Apart from the US election, local investors also bet on the country’s economic recovery along with the anticipated earnings growth of the companies in the coming year, according to Alviar.

“The PSEi ended higher today, marking four consecutive days of gains as more and more investors gain confidence that the economy will see a strong rebound in the fourth quarter,” AAA Equities head of research Chris Mangun said.

“A pick up in government and consumer spending is expected as we approach the Christmas season,” Mangun said.

More than 5.004 billion shares valued at P10.178 billion, changed hands. Advancers led decliners, 128 to 73, and 53 issues were unchanged. — BM, GMA News