PSEi soars 4.82% on window dressing, foreign buying

Philippine shares rallied on Friday as portfolio managers started window dressing market positions on the last trading day of the month, helped by inflow of foreign funds amid optimism on Metro Manila’s shift to general community quarantine.

The bellwether PSEi gained 268.62 points or 4.82% to 5,838.84. The broader All Shares increased by 109.04 points or 3.26% to 3,457.70.

“The index was up 4.8% today due to the month end portfolio rebalancing by the fund managers on selected index stocks as it is supported by the net foreign buying amounting to 955,386,906.59,” Unicapital Securities equity trader Christopher San Pedro said.

Fund managers improve their portfolios at the end of a period by engaging in window dressing—buying winning positions and selling losing stocks.

Foreigners bought P16.310 billion shares and sold P15.354 billion for a net buying position of P955.386 million.

“Investors remained optimistic on the outlook of the local economy as the country transitions to GCQ,” Regina Capital head of sales Luis Limlingan said.

President Rodriggo Duterte placed Metro Manila under a more relaxed GCQ starting June 1. 

The GCQ will pave the way for more businesses to reopen and for a percentage of workers to return to work provided that health protocols like social distancing and wearing of face masks are observed. -NB, GMA News