Stocks sustain rally on easing COVID-19, lockdown worries

MANILA, Philippines — Share prices sustained their strong performance yesterday, buoyed by hopes of a COVID-19 vaccine by the end of the year and easing quarantine measures that augur well for economic recovery.

The benchmark Philippine Stock Exchange index (PSEi) rallied 93.45 points or 1.55 percent to finish at 6,112.71.

Likewise, the broader All Shares index gained 40.23 points or 1.10 percent to end at 3,681.26.

Most of the subsectors closed the trading day in positive territory, as well except only for the mining and oil index which finally slipped as investors decided to cash in after booking gains following President Duterte’s move to lift the moratorium on oil and gas exploration at the West Philippine Sea.

Total value turnover was also robust at P8.225 billion. Market breadth was positive, 112 to 98, while 46 issues were unchanged.

Traders said investors are pinning their hopes on a better recovery of the economy as government moves to ease quarantine measures, allowing more businesses to open.

Strong hopes on the speedy development of a vaccine before the end of the year are also encouraging investors to return to the market, traders also noted.

“The PSEi gained momentum yesterday and ended higher, breaking above its 6,030 daily resistance level. Investors continue to gain optimism that the economy’s recovery will speed up with the easing of mobility and quarantine restrictions. The downtrend in new daily COVID-19 cases has also improved the sentiment. The main index is currently up 2.4 percent for the week. We may see it pull back before moving higher to test its next resistance at 6,170,” said Chris Mangun of AAA Southeast Equities.

COVID-19 cases in the country are now at 360,775, with the latest daily tally at 1,640 cases, according to the Department of Health bulletin yesterday.