Philippine stocks defy global slump, rise for 4th day

MANILA, Philippines — Local stocks continue to buck a regional downtrend as investors remain optimistic there won’t be another round of stricter quarantine measures which could further dampen economic activities in the country.

The benchmark Philippine Stock Exchange index (PSEi) rallied again yesterday, gaining 38.33 points or 0.57 percent to 6,718.51, its highest level since July 15.

Around Asia, stocks stumbled as a double-whammy of US Fed taper fears and COVID worries haunted equity markets and spurred a new rush into safe haven assets.

Traders said despite the Philippine government’s downgrade of its 2021 growth target, investors snapped up more bargain stocks near the close of trading as there were no indications authorities would extend the strict lockdown in the capital region to contain the spread of the Delta variant of coronavirus.

“The local market fell by as much as 64 points, but losses were reversed toward the end of the session,” AB Capital Securities said in a commentary.

Total value turnover reached P5.277 billion. Market breadth was negative, 95 to 88, while 46 issues were unchanged.

Net foreign buying persisted with P725 million, the largest in 19 days.

Among the top movers were JG Summit, which rose 3.5 percent to P62.89; Ayala Land Inc., which gained 2.1 percent to P34.75; and Aboitiz Equity Ventures, which rose 3.9 percent to P41.30.

“Investors continued their focus on the Philippines for a fourth straight day as they digested the Federal Reserve’s July committee minutes that showed most officials support tapering the monthly asset purchases before year-end.” said Luis Limlingan of Regina Capital.

He said for today, those monitoring Philippine shares are awaiting the announcement of Metro Manila’s new quarantine classification. The current classification ends today.