Late buying pulls share prices higher

MANILA, Philippines — Stocks advanced anew despite a generally weak investor sentiment as last-minute buying pulled the index higher, traders said.

The benchmark Philippine Stock Exchange index (PSEi) gained 18.37 points or 0.28 percent to close at 6,487.51 while the broader All Shares index improved by 10.46 points or 0.26 percent to finish at 3,967.96.

Investors extended their buying spree as the country, COVID-19 count slightly declines, but traders said expectations were tempered by uncertainties on the health of the economy.

A total of P4.73 billion worth of shares changed hands yesterday, with gainers outnumbering losers, 107 to 92, while 45 issues were unchanged.

Net foreign selling persisted for the 20th straight session with P310 million.

“The PSEi inched higher despite starting the day much weaker. The steady decline in the daily average of new COVID-19 cases has generated some optimism among investors,” Christopher Mangun, head of research at AAA Securities, said in a market analysis.

Since the 10,081 new cases registered on April 19, daily infections have sustained a downward trend to stay below the 10,000 level, but this development failed to convince President Duterte to downgrade Metro Manila and its surrounding provinces to general community quarantine.

However, Mangun said trading volumes remain moderate on forecasts that the economy may perform below expectations as projected by multilateral organizations and think tanks.

Luis Limlingan, head of research at Regina Capital, said investors would keep on rebalancing ahead of the month-end window dressing and release of corporate earnings.

The market is expected to trade sideways for the coming weeks. Investors are also seen to wait for changes in the quarantine restrictions applied in Metro Manila.