PSEi extends rally, breaks past 7,300

MANILA, Philippines — The local stock market extended its rally yesterday as investors chose to be cautiously optimistic despite the prevailing Omicron surge.

The benchmark Philippine Stock Exchange Composite index (PSEi) finished at 7,307.75, up 92.62 points or 1.28 percent, while the broader All Shares index gained 40.20 points or 1.05 percent to end at 3,870.11.

Total value turnover reached P7.197 billion. Market breadth was positive, 131 to 60, while 50 issues were unchanged.

Foreign transactions closed with a net inflow of P659.73 million.

Traders said yesterday’s sustained rally reflects investors’ hope that tighter restrictions won’t be necessary.

“The local stock market surged after the WHO (World Health Organization) country representative to the Philippines said that there might be no need to tighten restrictions further as hospital utilization remains low,” said AB Capital Securities in a commentary.

Japhet Tantiangco of Philstocks Financial said the statement of WHO representative to the Philippines Rabindra Abeyasinghe that Alert Level 4 is not yet needed in the NCR as the COVID-19 situation remains manageable reassured investors.

Also, OCTA Research fellow Dr. Guido David said Metro Manila’s COVID-19 reproduction number is declining, which implies that the trend is slowing and may soon reach its peak.

Around Asia, most emerging stock markets gained after US inflation data came in line with expectations and was deemed unlikely to change the Federal Reserve’s policy tightening time line.

Data released overnight showed US consumer prices rose at their fastest rate in nearly 40 years in December, but were not far off from expectations. The data is unlikely to temper the Fed’s plan as the US central bank has already flagged higher rates this year, with markets pricing in three hike.