The main stock barometer rallied to the 6,600 mark on Thursday as investors warmed up to prospects of Joe Biden becoming America’s new president.
The main-share Philippine Stock Exchange index (PSEi) racked up 180.72 points, or 2.8 percent, to close at 6,644.77 as Biden widened his lead over reelectionist Donald Trump in the closely watched US presidential polls.
After 13 months of net foreign selling at the stock market—the longest in recent history—the country could finally see its first month of net foreign buying, AP Securities vice president Jaycob Yedra said.
“The prevailing view is Biden will be good for most of the developing countries or emerging markets like the Philippines and it can offer opportunities which haven’t been priced in, which we are seeing now,” Yedra said at a press briefing.
“This is because emerging markets are a proxy for global trade growth and the outlook is that Biden winning will mean less US protectionist stance and therefore it will be good for global growth,” he said.
There was P623.88 million net foreign buying for the day. Value turnover exceeded P10 billion. —DORIS DUMLAO-ABADILLA