PSEi rallies after gov’t declares no need yet for alert level 4 in NCR

Philippine stocks rose on Monday after a government official said there were no immediate plans to impose stricter COVID-19 restrictions in Metro Manila given the still-ample supply of hospital capacity.

The benchmark Philippine Stock Exchange Index (PSEi) rose 1.85 percent, or 129.56 points, to 7,140.67 while the broader all-shares index added 1.45 percent, or 54.27 points, to 3,799.88.

Cabinet Secretary Karlo Nograles said in an interview on ANC’s Headstart that Metro Manila remained at “moderate” risk in terms of hospital bed utilization despite the ongoing surge in new infections. This means the capital region would continue to stay under alert level 3 in the government’s five-tier alert system until Jan. 15, he explained.

The rally was tempered by a report from Goldman Sachs Economics Research, which cut the Philippines growth forecast to 7.1 percent from 7.3 percent due to slow vaccination progress in the country. Its forecast remained within the government’s 7-9 percent growth target.

All PSE subsectors ended positive, led by property and financial stocks, which were up 2.78 percent and 2.76 percent each.

The industrial and mining and oil subsectors also advanced 1.69 percent and 1.51 percent, respectively, while holding firms added 1.44 percent. Services gained 0.83 percent.

A total of 745.52 million shares valued at P5.24 billion changed hands. Data from the PSE also showed 116 gainers versus 64 losers, while 53 companies closed unchanged.

Metropolitan Bank & Trust Co. was the most actively traded as it jumped 3.18 percent to P55.20 per share.

It was followed by Globe Telecom Inc., down 0.92 percent to P3,240; Solar Philippines Nueva Ecija Corp., up 7.5 percent to P1.29; AC Energy Corp., up 3.32 percent to P9.64; and SM Investments Corp., up 0.32 percent to P940 per share.

Other active movers were Ayala Land Inc., up 1.92 percent to P34.50; Jollibee Foods Corp., up 3.63 percent to P222.80; Security Bank Corp., up 6.63 percent to P111; PLDT Inc., down 1.51 percent to P1,822; and SM Prime Holdings Inc., up 3.93 percent to P34.40 per share. INQ