PSEi extends rally for 4th straight day

Philippine share prices continued its winning streak for the fourth straight session on Thursday, thanks to foreign players and investors’ optimism that Metro Manila will return to less strict lockdown in the coming week.

The benchmark PSEi gained 102.78 points or 1.71% to 3,591.74 at the closing bell. The broader All Shares increased by 39.76 points or 1.12% to 3,591.74.

“The PSEi extended gains today as investors gained more optimism that lighter quarantine restrictions will strengthen the economy's recovery in the third quarter,” AAA Equities head of research Chris Mangun said.

The optimism stems from President Rodrigo Duterte’s upcoming announcement of new quarantine classifications for the National Capital Region and its adjacent provinces on August 17, ahead of the expiration of the modified enhanced community quarantine (MECQ) in the said areas. 

Duterte placed Metro Manila, Laguna, Cavite, Rizal, and Bulacan under stricter lockdown from August 4 to 18 following pleas from the medical community for a “timeout” amid rising COVID-19 cases being admitted to hospitals, and recalibration of strategies to combat the virus.

“Foreign funds helped in today’s rally with net foreign buying registering P3.74 billion,” Philstocks Financial senior equity analyst Japhet Tantiangco said.

Foreign funds bought P6.078 billion worth of shares and sold P2.339 billion for a net buying positions of P3.74 billion.

“So far, the market has been continuing with its upward momentum which started after it hit its 5,700 support last August 3, 2020,” Tantiangco said.

“From its closing on the said date, the local market has already climbed by 6.68%,” he said.

More than 1.350 billion shares valued at P17.15 billion, changed hands. Advancers led decliners, 110 to 73, and 57 issues were unchanged.

“We may see some profit taking on the last trading day of the week,” Mangun said. —LDF, GMA News