Stocks end higher anew as COVID-19 cases fall

MANILA, Philippines — Shares closed in the green yesterday, advancing for a second day to lead Asian bourses, as improving COVID numbers and favorable economic indicators provided a lift to investor sentiment.

The benchmark Philippine Stock Exchange index (PSEi) rallied 78.71 points or 1.11 percent to end at 7,184.72 while the broader All Shares index gained 31.05 points or 0.70 percent to finish at 4,433.09.

Total value turnover reached P7.519 billion. Market breadth was positive, 104 to 99, while 46 issues were unchanged.

“The market surged anew after Metro Manila mayors announced the lifting of curfew in NCR, as new daily infections fall below pre-Delta levels. Mall operators SM Prime and Ayala Land led the index gainers after the MMDA proposed to extend mall hours up to 12 midnight in a bid to ease traffic congestion,” AB Capital Securities said in a market commentary.

Philstocks Financial analyst Japhet Tantiangco said the local bourse extended its rally amid improving manufacturing numbers.

“The sustained expansion in our manufacturing sector last October as shown in the IHR Markit Philippines’ Manufacturing PMI with a reading of 51.0 gave positive sentiment a boost,” Tantiangco said.

Improving COVID-19 numbers also boosted sentiment, he said, as this would pave the way for restrictions to ease.

“The continuous decline in our COVID-19 cases, the lifting of curfew in the National Capital Region, and the growing calls for the downgrade of the said region’s alert level also helped in yesterday’s rally. Finally, the positive spillovers from Wall Street’s record high performance supported the climb,” he said.

In Asia, shares were mixed in cautious trading ahead of the US Federal Reserve’s meeting Wednesday.