The local bourse was a star performer in Asia yesterday as it came up with its best seven-day rally in two decades which analysts attributed to renewed optimism that the economic fallout from the coronavirus outbreak won’t be as bad as feared.
The 30-company Philippine Stock Exchange index (PSEi) surged 4.35 percent on Thursday, gaining 271.84 points to close at 6,517.49 as the lifting of lockdown restrictions here and overseas prompted investors to cling to hopes of a quick recovery.
The all shares index was up 3.46 percent to 3,785.03 while all of the sub-indices posted gains. This was led by banks and conglomerates as the financials and holding firms indices grew 5.92 percent and 5.42 percent, respectively.
PSEi fared better than its neighbor markets in Asia. Tokyo’s Nikkei 225 rose 0.1 percent 22,631.01. Meanwhile, Shanghai Composite Index fell 0.2 percent to 2,917.56 and the Hang Seng in Hong Kong receded 0.27 percent to 24,282.19 as US-China trade tensions escalated and on the back of China’s bid to tighten its grip on Hong Kong.
“The local market is already on a seven-day rally, surging by about 19 percent within the said period. The rally is sustained by the optimism stemming from the easing of local quarantine measures, and the reopening of economies abroad. The relaxing of restrictions has sparked hopes that the local and global economy could move towards recovery,” Philstocks Financial Inc. senior research analyst Japhet Luis Tantiangco said in a text message.