Stocks recover slightly; investors still cautious

MANILA, Philippines — Stocks returned in positive territory yesterday, ending four days of losses, although investors remained cautious as seen in thin trade volume.

The benchmark Philippine Stock Exchange index (PSEi) closed at 5,861.39, up 22.73 points or 0.38 percent while the broader All Shares index went up 10.35 points or 0.29 percent to finish at 3,530.98.

Total value turnover was thin at P5.082 billion as market breadth was negative, with 113 decliners to 88 advancers, while 38 issues were unchanged.

“The PSEi ended slightly higher yesterday mainly flat on very low trading volume as investors wait for more signs of the economy’s recovery,” said Chris Mangun of AAA Southeast Equities.

He said most investors expect the market to trade sideways.

“This is in line with our expectations that the market will continue sideways as it builds momentum for a bigger move. The sentiment remains cautious as the government is set to announce the new status of quarantine restrictions in the country in the next few days,” he said.

First Metro Investment Corp., the investment banking arm of the Metrobank Group, said the equity and debt markets would remain viable sources of fundraising.

Daniel Camacho, head of investment banking of First Metro, said that despite the pandemic, companies continue to look for fundraising sources for working capital requirements, to refinance debt, or for acquisitions and other capital expenditures.

“Equity and debt markets are still accessible in the current environment, with the debt markets having a banner year,” he said.