PSEi sustains climb

The local stock barometer continued its upswing for the fourth straight session on Tuesday, tracking upbeat regional markets, as investors anticipated gains from the easing of local lockdown restrictions.

The main-share Philippine Stock Exchange index (PSEi) added 46.5 points or 0.64 percent to close at a nine-month high of 7,266.31.

“This could just be a bear market rally,” said BDO Unibank chief strategist Jonathan Ravelas.

“But that will change if we break 7,400,” he added.

To date, Ravelas said investors’ optimism was being driven by prospects of further economic reopening as new COVID-19 cases were declining from peak levels seen in previous months.

Resilient overseas remittances and business process outsourcing earnings were likewise contributing to the optimism.

However, Ravelas said a string of pandemic-related uncertainties remained, alongside risks arising from an imminent tapering of monetary stimulus by the US Federal Reserve and the upswing in global commodity prices.

Being an oil-importing country, rising commodity prices can exert pressure on local consumer prices. To date, inflation rate in the country is already averaging higher than the central bank’s target range of 2-4 percent.

The day’s gains were led by the industrial and holding firms, which rose by 1.26 percent and 2.11 percent, respectively.

Value turnover amounted to P8.54 billion. Local investors kept the market steady while foreigners were net sellers although the amount was marginal at P65.8 million.

There were 105 advancers that outnumbered 90 decliners, while 51 stocks were unchanged.

The market was lifted by PSEi newbies Converge and AC Energy, which both rose by over 10 percent.

Index heavyweight SM Investments was up 3.92 percent.

URC rose by 2.19 percent, while Wilcon added 0.18 percent.

—Doris Dumlao-Abadilla INQ