Philippine stocks advanced on Tuesday with the benchmark Philippine Stock Exchange Index (PSEi) ending above the 7,400 level as investors bet on the revival of economic activity and the continued downtrend in COVID-19 cases.
The PSEi finished the session higher by 1.63 percent, or 118.49 points, to 7,401.16 while the broader all-shares index was up 1.51 percent, or 58.69 points, to 3,937.64.
Tuesday’s close was the PSEi’s highest since Nov. 9 and was indicative of investors embracing more risk ahead of the busy Christmas season.
Calling sentiments “cautiously optimistic,” BDO Unibank Inc. chief strategist Jonathan Ravelas said investors were looking forward to more vaccinations and a spurt in consumer spending as the economy reopens.
“As vaccination increases, confidence increases,” he told the Inquirer. “I guess people are starting to see a sense of normalcy.”
Ravelas warned that recovery was far from assured, citing the resurgence of the virus in parts of Europe. Moves to raise interest rates to blunt inflation was also a concern, he added.
“Rising interest rates are negative to equity markets,” Ravelas said.
Those worries were on the back burner on Tuesday with all PSE subsectors recording gains, the biggest which came from services (2.32 percent), financials (2.27 percent) and mining and oil (2.11 percent).
A total of 1.55 billion shares valued at P9.3 billion changed hands while foreigners were net buyers to the tune of P775.75 million.
A total of 133 companies closed positive against 56 losers while 53 more were unchanged.
Monde Nissin Corp. was the most actively traded on Tuesday. It gained 1.93 percent to P18.98 per share.
It was followed by Converge ICT Solutions Inc., up 3.9 percent to P32; BDO Unibank Inc., up 4.3 percent to P133.50; AC Energy Corp., up 1.18 percent to P12.04, and International Container Terminal Services Inc., up 2.59 percent to P198 per share.
Other active stocks were Globe Telecom, down 0.55 percent to P3,600, Ayala Corp., up 1.99 percent to P897.50, The Keepers Holdings Inc., up 1.23 percent to P1.64, SM Prime Holdings Inc., up 2.65 percent to P36.85 and Synergy Grid & Development Philippines Inc., up 2.79 percent to P15.48 per share. INQ