PSEi rises for 3rd day, hits four-month high

MANILA, Philippines — Stocks advanced for a third straight session yesterday, closing at a four-month high as the loosening of quarantine restrictions in the metro lifted investor sentiment.

Traders said investors also ramped up their stock holdings on expectations the US Federal Reserve would keep policy rates on hold to temper inflation, and taper off its bond purchases as well.

The benchmark Philippine Stock Exchange index (PSEi) gained 59.24 points or 0.85 percent to close at 6,976.73, while the broader All Shares index added 31.52 points, or 0.75 percent to finish at 4,222.88.

It was the main index’s highest close since Feb. 16, when it hit 7,044.06.

A total of P8.03 billion worth of shares changed hands throughout trading. Advancers edged out decliners, 106 to 101, while 59 issues were unchanged.

“Local market rallied for the third straight day as sentiment got a boost after the government eased quarantine restrictions in NCR,” AB Capital Securities said in a market report.

Regina Capital head of sales Luis Limlingan said investors went on a buying spree, anticipating that the US Fed would loosen monetary policies. Likewise, optimism on news the COVID-19 situation here and abroad are improving, with vaccination speeding up, helped push up buying.

“The PSEi climbed closer once more to the 7,000 level ahead of the Fed’s meeting this week and while others kept an eye on the number of COVID-19 cases locally and globally,” he said.

“Investor expectations are for some tapering by the US Fed,” Limlingan added.