Stock index sustained a three-day rally as it reentered the 6,600 level yesterday.
Gainers were led by SM Property Holdings (up 5.3 percent), JG Summit (up 2.1 percent), and SM (up 0.6 percent), accounting for 52 pointsof yesterday’s upswing, according to AB Capital Securities Inc.
Net foreign selling, however, persisted for the fifth straight session with P667 million, while value turnover amounted to P5.8 billion.
AB Capital research head Jose Vistan said the government needs to focus on the urgent and important issues. “There is no problem in incurring more debt, as long as we keep the 60 percent cap, we can’t ignore the pandemic and I don’t think govt will initiate contractionary fiscal policy like imposing new taxes during a crisis,” he noted.
He added the market is technically oversold. “We’ve been going down since start of the year, fundamentally speaking, we’re already at five-year median valuation; no panic selling because we expected a second surge in Covid,” Vistan noted.
The Philippine Stock Exchange index (PSEi) finished Wednesday at 6,651.71, gaining 61.6 points (pts) or 0.93 percent after moving between 6,578.12 and 6,651.71 following the trade of 120,184 shares valued at P5.811 billion.
Favorable developments abroad also contributed to the bourse streakas US President Joe Biden is all set to make a new pledge on Covid-19 vaccines that all US adults should be eligible by 19 April.
“This speeds up the timeline he laid out last month, which called for a 1 May deadline,” according to Regina Capital Development Corp. managing director Luis Limlingan.
Gains in Asia subdued
Asian markets, meanwhile, mostly edged up but gains were tempered as investors took a breather following a recent run-up, though another round of healthy data provided cause for continued optimism for the global recovery.
California’s governor said he aims to fully reopen the most populous US state by the middle of June if the current pace of inoculations continues.
In a further sign the United States was bouncing back, officials said job openings had surged to a two-year high in February, well above the level expected by most analysts.
That followed last week’s forecast-busting employment report and data showing a strong pick-up in the manufacturing and key services sector.
The string of healthy data, along with Biden’s $1.9 trillion stimulus and $2.25 trillion infrastructure proposal, have helped world markets climb to record or multi-month highs.
Recent concerns that the recovery and expected spending splurge will fan inflation and force central banks to lift interest rates have eased for now, with benchmark 10-year US Treasury yields dipping.