PSEi hits 9-month high
Local stocks rallied strongly to end near the 7,400 mark Tuesday, outperforming regional markets, on the back of a post-election day euphoria.
The Philippine Stock Exchange index (PSEi) racked up 221.64 points or 3.09 percent to close at a nine-month high of 7,396.52. The day’s close was the best finish seen by the PSEi since ending at 7,408.44 on Aug. 14 last year. The index hit an intra-day high of 7,423.52.
This rally also marked the PSEi’s single-biggest daily gain since Jan. 27 this year. Elsewhere in the region, stock markets traded with mixed sentiment.
Following the peaceful conduct of the hotly contested May 9 presidential elections, the Filipino people gave an overwhelming mandate to the unorthodox mayor of Davao City, Rodrigo Duterte.
“Investors are making a killing in the market. Euphoria is still up in the air given the peaceful and orderly election,” said Astro del Castillo, managing director at fund management firm First Grade Finance. “Confidence with the new administration continues to flow back as value turnover remains above the norm.”
However, Del Castillo said investors should expect a “reality check” toward Friday or early next week, suggesting a pullback as investors lock up profits after the post-election rally.
“Market would now focus on the new government’s economic policies. We have had snippets of the economic/business policies of president-elect Duterte. We have earlier noted that his economic initiatives do not deviate much from the mainstream. His attraction is his promise to execute economic and fiscal programs properly and efficiently while addressing the needs of the large marginalized sectors, which have not enjoyed the benefit of relatively high growth during the current administration,” said Joey Cuyegkeng, economist at ING Philippines.
“Recent economic and business related statements of Duterte are encouraging but there are portions that require some vigilance. For now enjoy the post-election day rally,” he said. Doris Dumlao-Abadilla
