Index soars by 224 points

MANILA, Philippines — The stock market soared by more than 200 points yesterday, opening the week on a strong note.

The benchmark Philippine Stock Exchange index (PSEi), the stock market gauge, rose by 223.84 points, or 4.18 percent, to finish at 5,570.81.

Likewise, the broader All Shares rallied by 101.09 points, or 3.10 percent, to close at 3,360.75.

Most indexes were up as well, ending the trading session on a strong note for all sectors.

Total value turnover reached P4.856 billion. Market breadth was positive with 119 gainers against 76 losers, while 41 issues were unchanged.

“The positive cues from Wall Street sent the local bourse higher by 223.84 points or 4.18 percent to finish at 5,570.81. Industrials led a broad based advanced with gainers edging losers, 119 to 76,” Philstocks Financials said.

Market investors welcomed a slew of positive developments including signs of improvements in Europe on the spread of the coronavirus disease 2019 or COVID-19 pandemic, traders said.

Here at home, businessmen also welcomed indications that the Luzon-wide enhanced community quarantine would be extended for two weeks and would thus help in containing the spread of the virus.

“Most Asian equities markets ended higher yesterday as several countries that saw major COVID-19 outbreaks reported a slowdown in new cases. Europe’s four worst-hit countries, Spain, Italy, France and the United Kingdom reported declines in deaths,” said Chris Mangun of AAA Securities.

However, foreign outflows continued yesterday with P470.8 million worth of net-selling.

Mangun said that at the start of trading, investors were not so optimistic.

“We saw limited action at the open as investors were trying to get a feel of the market. Luckily, there was minor selling which signaled bulls to take over. Yesterday’s rally was led by gains in retail and consumer stocks. Blue-chips issues like Universal Robina Corp. and Robinsons Retail saw double-digit percentage gains as investors see strength in the retail space despite the lockdown,” Mangun said.

Thus, he said the PSEi was able to break above the 5,500 resistance.

Profit-taking is expected today following the rally.

“If it can stay above 5,500 till the end of the week, investors will gain more optimism,” he said.

Luis Limlingan of Regina Capital shared this view.

“Local shares climbed as the Eurozone epicenter cases declined, signalling the possibility of some stability in the spread of the disease. Spain became the epicenter of the pandemic in Europe as the total number of cases surpassed Italy, but deaths in both of those countries and France all fell on Sunday from the prvious day. Sweden is bracing for thousands of deaths, Dubai expanded limits on movement, and a quarter of French workers are now getting jobless benefits,” Limlingan said.

Meanwhile, global stocks jumped yesterday as investors were encouraged by a slowdown in coronavirus related deaths and new cases, while oil prices skidded after Saudi-Russian negotiations to cut output were delayed, keeping oversupply concerns alive. Equity investors took solace as the death toll from the coronavirus slowed across major European nations including France and Italy.