Index advances for 4th straight trading session

MANILA, Philippines — Share prices rallied for the fourth straight session to post a fresh nine-month high yesterday as the sustained drop in new virus cases fueled expectations of an early economic reopening.

The benchmark Philippine Stock Exchange index (PSEi) closed at 7,266.31, up 46.50 points or 0.64 percent, while the broader All Shares index gained 20.47 points or 0.46 percent to finish at 4,451.40.

Net market value turnover was at P8.24 billion, lower than the P9.27 billion average this month as investors await the third-quarter corporate earnings result.

Market breadth was positive, 105 to 90, while 51 issues were unchanged.

Despite the upbeat sentiment in the market, foreigners remained net sellers at P65.8 million.

Claire Alviar, research analyst at PhilStocks Financial, said yesterday’s positive sentiment was driven by the improving COVID-19 cases in the country.

The easing of quarantine restrictions, as reflected in the implementation of a more relaxed alert levels in other areas outside the National Capital Region (NCR), are also encouraging investors to return to the market.

On Monday, new COVID-19 cases fell below 7,000 for the second straight day while active cases were the lowest since Aug. 5. Yesterday,new infections further dropped below the 5,000 mark.

“Given this, hopes for further economic reopening are rising,” Alviar said.

“The stock market continued its advance but stops short of the key resistance at 7,300. New index favorites AC Energy and Converge, which were battered by profit-taking the past week, rebounded strongly and led the index gainers with double-digit gains,” AB Capital Securities said in a report.

Converge ICT Solutions gained the most, up by 10.71 percent to P31, due to bargain hunting after its selloff on Monday.