PSEi rallies after sustaining hefty losses
Credit to Author: Jordeene B. Lagare| Date: Mon, 17 Feb 2020 16:41:42 +0000
LOCAL shares on Monday soared by more than half-percent following a gloomy performance in the past week, with the market cheering on the measures to curtail the spread of the coronavirus disease-2019 (Covid-19).
The benchmark Philippine Stock Exchange (PSEi) surged by 0.62 percent or 44.85 points to end at 7,326.85 while the wider All Shares climbed by 0.45 percent or 19.59 points to finish at 4,338.70.
Regina Capital Development Corp. managing director Luis Limlingan said Philippine stocks notched a gain as steps are being taken to address the outbreak that first emerged two months ago.
“New measures taken in Hubei and Wuhan to curb movements under the new appointed leaders,” Limlingan added.
Earlier, Chinese Finance Minister Liu Kun said “targeted and phased” steps in reducing taxes and expenses would be in place to aid entities such as cutting or exempting value-added taxes. These would apply to businesses providing essential goods or logistics. Also, additional funds will be provided to provincial authorities.
“Minor gains in several blue-chips allowed the PSEi the end slightly higher despite average trading volumes and more foreign outflows. The general sentiment remains extremely cautious despite the lack of panic selling today,” AAA Equities head of research Christopher Mangun said.
Mangun said the majority of investors are on the sidelines waiting for a better environment and that trading would go sideways for the time being.
Yesterday’s performance of local shares was a “short-term bounce to test the resistance at
7,400 levels,” according to Unicapital Securities equity analyst Christopher Adrian San Pedro.
“In the local front, I expect the investors to go on a wait and see mode as they await the release of the 2019 earnings result among selected index stocks,” said San Pedro, adding investors would also await global updates on the Covid-19.
In Asia, Tokyo plummeted by 0.69 percent but Shanghai and Hong Kong surged by 2.25 percent and 0.52 percent, respectively.
US markets were closed to commemorate Presidents’ Day.
Back in Manila, most sectors ended in the positive territory, with holding firms and industrial gaining 1.35 percent and 0.61 percent, respectively.
About 782.59 million shares were traded for P7.83 billion.
Winners outnumbered losers, 107-77, while 49 issues were unchanged.