PSEi rises on 2020 budget approval
Credit to Author: Tyrone Jasper C. Piad| Date: Tue, 07 Jan 2020 16:21:32 +0000
Investor sentiment on Tuesday was buoyed by the recent signing of the 2020 national budget and positive development on the water concessionaires’ debacle over franchise agreements.
The benchmark Philippine Stock Exchange index (PSEi) inched up by 0.55 percent or 42.83 points to end at 7,840.70 while the wider All Shares added 0.32 percent or 15.02 points to finish at 4,648.35.
“The signing of the 2020 budget and renewed hopes on the contract extension for the water concessionaires sent the local market higher,” Philstocks Financial Inc. said in a market comment.
President Rodrigo Duterte signed this year’s P4.1-trillion national budget on Monday, with the Education and Public Works departments receiving the biggest chunk at P692.6 billion and P581.7 billion, respectively.
Meanwhile, President Duterte said that water firms — whose contract extension was cancelled — would be offered new deals, providing relief to the market.
2TradeAsia, meanwhile, said that inflation averaging within the government target range uplifted market sentiment as well.
Consumer price growth in 2019 registered at 2.5 percent, falling between the 2- to 4-percent target.
“It [inflation] is still within an acceptable range for the administration,” Regina Capital Development Corp. head of sales Luis Limlingan said.
Wall Street recovered. The Dow Jones, S&P 500 and Nasdaq gained 0.24 percent, 0.35 percent and 0.56 percent, respectively.
In Asia, Tokyo surged 1.60 percent, Shanghai added 0.69 percent, Hong Kong rose 0.50 percent, Seoul increased 0.95 percent, Singapore climbed 0.74 percent, Thailand was up 0.51 percent, and Vietnam spiked 0.24 percent. Jakarta, meanwhile, fell 0.09 percent.
In Manila, sectors were mixed. Industrial, holding firms and service rose while the rest fell.
Volume turnover stood at 2.19 billion shares amounting to P6.49 billion.
Winners led losers, 94-85, while 64 issues were unchanged.