PSEi gains on possible virus spike ebbing in metro

Philippine shares recovered on Friday after independent pandemic monitor Octa Research said coronavirus cases in Metro Manila were trending lower. Investors also brushed aside inflation jitters in the United States, which pushed US indices lower overnight.

The benchmark Philippine Stock Exchange Index (PSEI) ended the week higher by 0.75 percent, or 54.24 points, to 7,293.52 while the broader all-shares index was up 0.35 percent, or 13.56 points, to 3,869.40.

The market welcomed the announcement from Octa Research stating that Metro Manila COVID-19 infections were in a “downward trajectory.” Octa fellow Guido David said the virus’ reproduction number declined while weekly growth rates were in negative territory.

Luis Gerardo Limlingan, managing director at Regina Capital Development, said investors turned to bargain hunting “as the country was perceived as more shielded from the other regions that are hard hit from the pandemic and inflation.”

“[Wall Street] succumbed in the afternoon, giving up sharp gains from earlier in the session, as equities continue to struggle amid a rising interest rate environment,” he added.

PSE subsectors ended the session mixed. Property and holding companies rose 1.74 percent and 1.41 percent, respectively, while mining and oil was down 0.70 percent alongside services, (-0.45 percent), financials, (-0.38 percent) and industrial, (-0.17 percent).

A total of 2.15 billion shares valued at P5.52 billion were traded on the PSE while foreigners remained net sellers to the tune of P210.76 million.

Gainers and losers were nearly matched 94 to 93, while 53 companies closed unchanged.