PSEi extends rally on renewed optimism on economy

Philippine shares closed the week on a strong note on Friday amid renewed investor optimism on the country’s recovery from the COVID-19 pandemic-induced recession.

The benchmark PSEi closed at 7,002.26, higher by 38.25 points or 0.55% from the previous trading session. The broader All Shares increased by 19.54 points or 0.46%to close at 4,294.97.

“The local market closed this Friday at 7,002.26, up by 38.25 points on the back of optimism towards the local economy,” Philstocks Financial senior equity analyst Japhet Tantiangco said.

“This comes as investors continued to digest the improvements in the Philippines’ May employment figures,” he said.

The number of unemployed Filipinos declined in May as quarantine restrictions eased during the period, which allowed more individuals to rejoin the workforce, results of the latest Philippine Statistics Authority (PSA) Labor Force Survey (LFS) showed Thursday. 

The PSA reported that the unemployment rate stood at 7.7% in May, lower than the 8.7% recorded in April.

The 7.7% unemployment rate is equivalent to 3.73 million adult Filipinos — 15 years old and above — without jobs, a slight improvement from the 4.14 million jobless individuals in April.

“Investors were also cheered by the improvements in the Philippines’ COVID-19 situation with the country now classified as a low risk area by the Department of Health,” Tantiangco said.

The Philippines has been classified as a low-risk area for COVID-19 after the national case growth rate and average daily attack rate (ADAR) decreased. 

More than 2.774 billion shares valued at P5.848 billion, changed hands. Advancers led decliners, 108 to 100, and 36 issues were unchanged.—LDF, GMA News