Shares gain as regional investors turn to Philippines

Share prices managed to climb by 28.45 points or 0.51 percent, to close at 5,654.70, while the broader All Shares index gained 8.67 points or 0.25 percent, to end at 3,408.65 as regional investors turned to the local market.

The sectoral gauges on the other hand were a mixed bag with the financials and holding firms finishing in the red while the property, industrial and services sectors finished in positive territory.

Total value turnover remained thin at P3.774 billion. Market breadth was negative with 114 losers and 56 gainers, while 53 issues were left unchanged.

Traders said market investors generally stayed on the sidelines after the Development Budget Coordination Committee (DBCC) revised their economic forecasts for 2020 to a contraction of 3.4 percent.

Traders said the government’s decision to modify the Luzon-wide enhanced community quarantine did not help much as some businesses have already been affected by the negative impact of the coronavirus disease 2019 or COVID-19.

Luis Limlingan of Regina Capital said: “Investors parked their funds into the Philippine market as investors grappled with regional downbeat remarks from US Fed chairman Jerome Powell along with worries over the market’s valuation. European shares fell, led by travel stocks, automakers and as fears of a resurgence in coronavirus cases resurface.”

Asian shares declined yesterday on pessimism about life getting back to normal soon amid the coronavirus pandemic, even as Japan prepared to let businesses reopen in some regions.