Index soars to near 3-month high

MANILA, Philippines — After a weak start for the week, the main stock index bounced back strongly yesterday, vaulting past the 6,800 level to hit its highest mark in nearly three months.

The 30-company Philippine Stock Exchange index or PSEi gained 214.26 points or 3.23 percent to 6,841.69 its highest level since March 10 while the broader All Shares index advanced 94.68 points or 2.35 percent to 4,117.98.

Winning stocks vastly outnumber losers, 153 to 52, while 49 issues were unchanged.

Traders said overseas investors continue to step up their purchases for the fourth consecutive session as net foreign buying reached P1.8 billion.

They said the PSEi’s rally last week remains sustainable as long as the COVID-19 situation improves and more vaccines are rolled out.

Claire Alviar, research analyst at Philstocks Financial Inc., said market sentiment was also boosted by the passage of Bayanihan 3 in the House of Representatives.

Investors also welcomed more relaxed quarantine measures.

“The government placed the NCR Plus bubble under general community quarantine with restrictions, more relaxed than the lockdown measures in May which spur optimism. Residents in Greater Manila can now travel to some tourist destinations. Dine-in and al fresco services of restaurants have increased the capacity,” she said.

Another positive catalyst was the manufacturing performance last month.

“Also, the Philippine manufacturing PMI shows an improvement in May compared to the figure in April which may continue if the government reopens more businesses in the coming months,” she said.