PSEi halts skid on plans to ease lockdown level

MANILA, Philippines — The local stock index returned in the green yesterday as investors cheered moves to put Metro Manila on a more relaxed quarantine classification.

The benchmark 30-company Philippine Stock Exchange index or PSEi finished 76.77 points or 1.12 percent higher at 6,926.41.

The broader All Shares index likewise rose to 4,199.00, up 28.52 points or 0.68 percent, as all subsectors advanced.

Total value turnover reached P9,562 billion.  Market breadth, however, was negative with 116 losers to 98 gainers, while 41 issues were unchanged.

In a market commentary, AB Capital Securities said the PSEi rebounded as nine out of 17 Metro Manila mayors voted in favor of putting the capital under the less strict modified general community quarantine (MGCQ) by March.

This, it said, snapped the market’s decline for the past two consecutive days.

For his part, Luis Limlingan of Regina Capital said investors returned to the market to hunt for bargains.

“Investors returned to the Philippines for bargain hunting after successive selloffs after recent economic data showed only a slightly better labor market amid increasing bond yields,” he said.

However, he noted that investors are now worried over potential inflation spikes driven by elevated commodity and energy prices.

In the oil market, he noted, profit-taking dragged oil prices despite a steep drawdown in US crude inventories. Brent crude settled 0.64 percent lower to $63.93 per barrel. The US WTI closed at $60.52 per barrel, down 1.01 percent.