Stocks recover as investors embrace return to lockdown

MANILA, Philippines — Share prices recovered yesterday after Monday’s heavy selloff as investors have embraced President Duterte’s decision to put Metro Manila and nearby provinces back to modified enhanced community quarantine.

The benchmark Philippine Stock Exchange index (PSEi) gained 59.58 points or 1.04 percent to finish at 5,775.50, while the broader All-Shares index rose 28.51 points or 0.83 percent to end at 3,426.97.

All other gauges  gained as well, with the mining and oil, industrial and property sectors advancing the most.

Total value turnover, however, remained thin at P5.7 billion. Market breadth was positive, with 136 advancers to 52 decliners, while 46 issues were unchanged.

The market has recovered with hopes that businesses may be able to navigate the lockdown the second time around after already seeing its impact on day-to-day business activities, traders said.

“The market recovered yesterday as investors were optimistic that businesses are more prepared to operate efficiently despite stricter quarantine restrictions. Selling pressure was lighter  and (Monday’s) move was seen as a knee-jerk response to the reimposition of the lockdown,” said Chris Mangun of AAA Securities.

It seems investors also appreciated the moves of the government to respond to health workers, traders said.

“The recent move by the government to take the advice of health workers and tighten quarantine was also seen as renewed cooperation between the government and the people. Retail investors were also very active today as several second-liners and speculative issues saw substantial gains,” Mangun said.