Philippine shares up over expected timely passage of 2021 budget

Philippine shares continued its winning streak on Friday amid investor optimism on the timely passage of the P4.5-trillion national budget for 2021.

The bellwether PSEi gained 91.73 points or 1.28% to 7,246.16 at the closing bell. The broader All Shares increased by 47.81 points or 1.12% to 4,318.78.

“The PSEi gained for the second straight day, by +91.73 points or +1.3% to close at 7,246.16, new 9.5-month highs or since February 24, 2020 or at pre-COVID-19 lockdown/pandemic levels as the markets anticipate for the final approval of the 2021 national budget by President Duterte on or before Christmas, at the earliest, after the approval by lawmakers/Bicam on December 9, 2020,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said.

The Senate and the House of Representatives on Wednesday ratified the bicameral conference committee report on the measure providing for the proposed P4.5-trillion national budget for 2021. 

Included in the bicam-approved budget bill are P72.5 billion in regular and unprogrammed funds for COVID-19 vaccine procurement, storage, and distribution in 2021.

Around P23 billion has been realigned for the rehabilitation of communities affected by the recent strong typhoons that hit the country.

More than 75.928 billion shares valued at P9.885 billion, changed hands. Advancers led decliners, 155 to 77, and 40 issues were unchanged. -NB, GMA News