PSEi grazes 7,000 barrier as economy gives investors hope

The stock barometer flirted with the 7,000 mark on Thursday as investors looked forward to improvements in economic activities with the easing of quarantine restrictions.

The main-share Philippine Stock Exchange index (PSEi) gained 62.1 points, or 0.9 percent, to close at 6,964.01. A peak of 7,002.23 was hit in intraday trade.

“Philippine shares opened the second half of the year on a high note as investors bid farewell to the second quarter positively. Despite the recent high inflation reading, many continue to bet that economic rebound is within reach,” said Luis Gerado Limlingan, managing director at Regina Capital Development.

The government also reported yesterday that unemployment rate has dipped to 7.7 percent of the labor force in May from 8.2 percent in April.

“With labor market conditions improving, we tie this to the subsequent reopening of the economy but we remain uncertain of prospects for recovery as we know that the overall health of the economy and the subsequent impact on the labor market go hand in hand with [community quarantine] levels,” said Nicholas Mapa, economist at ING Philippines.

At the stock market, all counters eked out gains, led by the mining/oil subindex which rose by 2 percent. The financial, holding firm and property counters all added over 1 percent.

Value turnover for the day amounted to P13.5 billion. Net foreign selling hit P4 billion.

—DORIS DUMLAO-ABADILLA INQ

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