The stock market continued to advance on Tuesday after taking cues from Wall Street and on the unlikelihood that the tighter lockdown reimposed on Metro Manila and four nearby provinces last week would be extended.
The benchmark Philippine Stock Exchange index (PSEi) inched up by 0.39 percent or 23.02 points to close at 5,953.94 while the wider All Shares added 0.68 percent or 23.92 points to finish at 3,537.29.
Philstocks Financial Inc. research analyst Claire Alviar said the bourse took its cues from the improved performance of US markets, driven by President Donald Trump’s recent signing of four executive orders aimed at easing the impact of the coronavirus disease 2019 (Covid-19) pandemic on ordinary Americans.
The Dow Jones gaining for seven straight days also spurred positive sentiment, she added.
The unlikelihood of an extension of the modified enhanced community quarantine in the National Capital Region, Bulacan, Cavite, Laguna and Rizal also boosted the market, the analyst said, “although this…remains uncertain, given the [rising number of] Covid-19 cases in the country, which put” the health of medical frontliners and of the economic at risk.
As of Tuesday, the number of confirmed coronavirus cases in the country rose to 139,538, of which 68,794 are active, Of the total 68,432 have recovered and 2,312 died.
AAA Equities Head of Research Christopher Mangun agreed with Alviar on the possibility of the extension as weak, but noted that the bourse’s gains on Tuesday were limited because investors succumbed to profit-taking.
He also noted that they remain cautious as they wait for any policy adjustment from monetary authorities ahead of their meeting next week.
Wall Street closed in the green overnight, with the Dow Jones and S&P 500 gaining 1.3 percent and 0.27 percent, respectively. Nasdaq shed 0.39 percent.
Most Asian markets also rallied, with Tokyo up 1.88 percent, Hong Kong gaining 2.03 percent, Seoul climbing by 1.35 percent, Jakarta inching up by 0.71 percent and Bangkok adding 1.26 percent. Shanghai slid by 1.15 percent, Singapore shed 0.22 percent and Ho Chi Minh slipped by 0.01 percent.
In Manila, most sectors rose, with services leading at 1.53 percent. Industrials and financials lost 0.04 percent and 0.5 percent, respectively.
Total volume turnover was at 5.31 billion shares, valued at P5.07 billion.
Winners outpaced losers, 115 to 84, while 38 securities were unchanged.