PSEi gains 0.8% as market calms down

The local stock market stabilized on Tuesday after a two-day sell down caused by the resurgence in COVID-19 cases that, in turn, led to the imposition of new domestic mobility restrictions.

The Philippine Stock Exchange index (PSEi) added 51.18 points, or 0.8 percent, to close at 6,446.35.

“The PSEi bounced back and ended slightly higher as panic-selling subsided. Gains were led by blue chip property and banking issues. It was mainly a technical bounce after days of massive decline,” said Christopher Mangun, head of research at AAA Equities.

“Fears of surging COVID-19 cases which may lead to an out-of-control situation persist; however, clarity on economic and business restrictions as well as progress on the inoculation may have had a positive effect on the general investor sentiment,” he added.

The gains were led by the financial and property counters, which both gained over 1 percent. The holding firm and services counters both added less than 1 percent.

The industrial and mining/oil counters, meantime, both slipped by less than 1 percent.

Value turnover stood at P5.04 billion. A substantial portion of the market’s liquidity had been siphoned off by the P14.7-billion initial public offering of DDMP REIT, whose listing was deferred to Wednesday from Tuesday.

Mangun said the meager trading value indicated that many investors were staying on the sidelines and taking a wait-and-see stance.

The PSEi’s support is at 6,200 with resistance at 6,500, he said.

There were 125 advancers that edged out 76 decliners, while 52 stocks were unchanged.

Investors picked up shares of grocery chain operator Puregold and JG Summit, which both gained over 3 percent.

The continued rally by Puregold was a sign that investors are taking the same strategy at the beginning of the lockdown, said Mangun, referring to the shift to “essential industries” play. —DORIS DUMLAO-ABADILLA