STOCKS continued to rise on Monday on hopes of a further easing in mobility restrictions as coronavirus cases remained low and after the government said the economy grew faster than initially reported in the second quarter.
The 30-member Philippine Stock Exchange index (PSEi) rose by 55.45 points or 0.75% to close at 7,396.22 on Monday, while the broader all shares index gained 19.88 points or 0.44% to end at 4,510.89.
Monday’s close topped Friday’s as “the highest closing rate since Feb. 20, 2020,” which was weeks before the country was first placed on strict lockdown due to the coronavirus pandemic, Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in a Viber message.
He said the market remains optimistic on expectations of a further reopening of the economy as new coronavirus cases have eased to around 1,000 to 2,000 daily from over 10,000 at the height of the surge in August.
“Philippine shares continue to be bought up, closing at a new [year-to-date] high with the revision of [second-quarter] GDP (gross domestic product) to 12% and the continued earnings releases. In addition, positioning is being made ahead of any announcements from the MSCI, and [third-quarter] GDP which will also be out this week,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said.
The Philippine economy grew at a faster pace in the second quarter than first reported, the Philippine Statistics Authority (PSA) said on Monday.
GDP — the value of all finished goods and services produced in the country at a given period — rose 12% in the second quarter, faster than the 11.8% preliminary estimate.
Third-quarter GDP data will be released by the PSA on Tuesday. A BusinessWorld poll of 18 analysts yielded a GDP growth estimate of 4.7% in the third quarter, lower than the 12% jump in the second quarter of 2021 and a turnaround from the 11.4% decline in the third quarter last year.
Majority of sectoral indices increased on Monday except for mining and oil, which went down by 75.76 points or 0.76% to 9,883.14, and holding firms, which lost 24.01 points or 0.33% to close at 7,125.90.
On the other hand, financials gained 35.76 points or 2.23% to end at 1,636.34; property rose by 34.63 points or 1.4% to 3,383.96; services increased by 27.44 points or 1.40% to 1,979.35; and industrials went up 18.81 points or 0.17% to close Monday’s session at 10,849.48.
Value turnover amounted to P8.30 billion on Monday with 1.34 billion shares switching hands, slightly lower than the P9.42 billion with 1.40 billion issues traded on Friday.
Advancers beat decliners, 107 to 101, while 44 names ended unchanged.
Net foreign buying rose to P908.47 million yesterday from the P695.24 million logged on Friday.
The next important resistance is at 7,500, “prior to further upside potential towards new pre-pandemic highs, going forward,” RCBC’s Mr. Ricafort said. — B.A.D. Anago