Foreign buying powers index up for 4th day

MANILA, Philippines — Stocks extended gains for the fourth straight session yesterday, powered by the largest net foreign buying so far in the year, buoyed by positive sentiment on the progress of the coronavirus vaccine rollout.

The 30-company Philippine Stock Exchange index (PSEi) closed at 7,065.55, up by 41.07 points or 0.58 percent while the broader All Shares index gained 17.36 points or 0.41 percent to finish at 4,249.93.

The sectoral gauges, however, were a mixed bag with three sectors closing in positive territory and the three others ending in the red.

Total value turnover reached P12.271 billion. Market breadth was positive, 127 to 104, while 40 issues were unchanged.

AB Capital Securities said the market saw the largest net foreign buying for the year at P530 million.

“Sentiment continued to be positive on optimism of vaccine rollout this month,” it said.

Traders said local shares joined its Asian counterparts which tracked Wall Street’s rise on hopes for more stimulus and vaccine rollouts.

Luis Limlingan of Regina Capital said shares closed higher” as investors repositioned after the release of the results of the PSEi rebalancing, while others made bets ahead of the MSCI’s decision later. “

The PSEi rebalancing showed the same composition of the index following the latest review of the Philippine Stock Exchange.

“Others became hopeful that the new COVID-19 stimulus coupled with further economic recovery would be enough impetus for companies to recover,” Limlingan said.