Stocks jump to 6,600 level in anticipation of ECQ easing

The benchmark Philippine Stock Exchange Index (PSEi) gained further ground on Wednesday ahead of the potential lifting of strict quarantine measures after August 20.

By the closing bell on Wednesday, the PSEi rose 1.81 percent, or 118.77 points, to 6,680.18 while the broader all-shares index added 1.13 percent, or 45.94 points, to 4,118.41.

Luis Gerardo Limlingan, managing director at Regina Capital Development, said in a research note the increase was partly driven by buying from fund managers.

“In addition, many are anticipating the quarantine restrictions may be loosened soon, hence opening the economy further to more regular operations,” Limlingan said.

On Wednesday, special adviser to the National Task Force Against COVID-19 Ted Herbosa said he would recommend shifting the metro to the so-called modified enhanced community quarantine (MECQ) from its current strict lockdown classification.

“In my opinion, I will deescalate to MECQ and strengthen the localized lockdown, testing and tracing of LGUs so that not all areas will be greatly affected. [This is also] so we can immediately address the area with clustering of cases,” Herbosa said during a televised interview.

Among subsectors, only mining and oil closed in negative territory as it slid lower by 1.39 percent.

Holding firms and property gained the most at 2.69 percent and 2.64 percent, respectively. Financials also went up 1.04 percent, followed by services and industrial, up 0.64 percent and 0.6 percent apiece.

According to data from the PSE, some 1.14 billion shares valued at P6.18 billion changed hands on Wednesday. There were 94 advancers versus 88 decliners, while 55 companies closed unchanged.

Foreigners were also net buyers to the tune of P90.51 million.

Bank of the Philippine Islands was the most actively traded during the session as it gained 0.96 percent to P84 per share.

It was followed by Emperador Inc., up 12.83 percent to P16; AC Energy Corp., down 2.77 percent to P8.76; Globe Telecom, up 2.5 percent to P2,134; and BDO Unibank Inc., up 1.53 percent to P112.80.