PSEi rebounds to 7,000-level on investor optimism

Philippine shares rallied to 7,000-level on Tuesday amid continued investor optimism on the economy’s eventual recovery from the COVID-19 pandemic.

The bellwether PSEi gained 218.10 points or 3.21% to 7,0009.56 at the closing bell. The broader All Shares gained 99.39 points or 2.42% to 4,1199.67.                                       

“Investors remain very optimistic which is evident in the market's movement as well as trading volumes,” AAA Equities head of research Chris Mangun said.

“The optimism came from the expectations of more mobility in the coming weeks as the government lifted certain restrictions to allow more economic activity,” Mangun said.

In a bid to further open the economy and spur business activities, the government now allows minors to go to malls provided that they are accompanied by their parents. 

Meanwhile, Metro Manila and other areas - Batangas, Iloilo City, Tacloban City, Lanao del Sur, Iligan, Davao City - were placed anew under a more relaxed general community quarantine (GCQ), while the rest of the country is under the loosest form of lockdown modified GCQ until the end of the year.

Apart from persistent investor optimism, the market’s rally was also brought by profit-taking as “buyers aggressively picked up shares of blue chips that were battered last week,” according to Mangun.

“The rally was led by property and holding firms which saw heavy profit taking last week,” he said.

“Buying pressure picked up at the open and persisted throughout the trading session. We also saw a spike right at the close, which pushed the main index to close at its high for the day, a few points above the key 7,000 psychological resistance level,” he added.

Foreigners were net sellers at P1.331 billion as they sold P5.61 billion worth of shares and bought P4.28 billion worth of stocks.

More than 4.035 billion shares valued at P10.88 billion, changed hands. Advancers led decliners, 119 to 102, and 35 issues were unchanged. — RSJ, GMA News