PSEi surges 2% on last-minute buying, House passage of 2021 budget

Philippine share prices surged by more than 2% on Monday, buoyed by last-minute buying on select stocks and continued optimism after the passage of the 2021 national budget at the House of Representatives.

The local stock barometer gained 120.79 points or 2.05% to 6,019.26 at the closing bell. The broader All Shares index rose by 59.12 points or 1.65% to 3,641.03.

Monday's climb came after the House of Representatives last Friday evening approved on third and final reading the P4.5-trillion budget for 2021, the first general appropriations measure containing provisions to address the impact of the COVID-19 pandemic.

"Aside from the passage of the budget, there was a last-minute buying activity," Jervin de Celis, trader at Timson Securities Inc., said in a mobile message.

De Celis cited stocks such as SM Investments Corp., SM Prime Holdings Inc., JG Summit Holdings Inc., Jollibee Foods Corp., and GT Capital Holdings Inc.

"Investors are probably taking this opportunity to load some shares as the government relaxes rules to reopen the economy," he said.

Just recently, the inter-agency task force for the management of emerging infectious diseases (IATF-EID) approved the easing of restrictions, such as allowing resumption of non-essential outbound travel starting Wednesday, October 21.

"While the index is up, foreigners are still net sellers today," said De Celis.

Foreign funds bought P1.441 billion of shares during the session and sold P2.056 billion for a net selling position of P614.461 million.

More than 2.480 billion shares, valued at P5.443 billion, changed hands. Advancers led decliners, 125 to 76, and 46 issues were unchanged. — RSJ, GMA News