PSEi recovers as Brexit concerns ease

MANILA, Philippines - The stock market recovered yesterday as investors gobbled up bargain stocks amid easing Brexit concerns, analysts said.

The benchmark Philippine Stock Exchange index (PSEi) gained 86.18 points, or 1.13 percent, to settle at 7,715.90.

Likewise, the broader All Shares index regained 45.31 points or one percent to close at 4,587.95.

All major counters led by the mining and oil index ended in positive territory. 

Total value turnover reached P6.81 billion as advancers beat decliners with a wide lead, 120 to 74, while 38 stocks were left unchanged.

Analysts said concerns are now easing over Brexit after experts calmed investor fears by saying the impact of United Kingdom’s exit from the European Union on the Philippines is likely to be minimal.

“ The impact of Brexit   beyond the initial knee jerk reaction we experienced last week is minimal,” said Justino Calaycay of A&A Securities.

Nonetheless, Calaycay said investors should keep a close watch on the progress of the process for possible shocks.

British Ambassador Asif Ahmad said there would be no major change in terms of how Filipinos live, work and travel in Europe and that there shouldn’t be any concern.

Calaycay also said Filipinos would also be looking at the change in government this week as the inauguration of incoming president Duterte happens on Thursday.

The market may give a warm send off to Aquino and a warm welcome as well to the Duterte administration.