Renewed optimism pushes PSEi above 5,300

The local stock barometer rebounded to the 5,300 level on Tuesday, tracking upbeat global markets, as investors hoped for medical research breakthroughs that could turn the tide in the war against the coronavirus (COVID-19) pandemic.

The Philippine Stock Exchange index (PSEi) recouped 190.07 points, or 3.7 percent, to close on Tuesday at 5,321.23.

Domestic investors, including those who were doing month-end and quarter-end window-dressing, kept the index afloat. On the other hand, foreign investors were net sellers to the tune of P634.52 million.

Local stock brokerage Papa Securities said there was “positivity in the air” following upbeat trading in Wall Street overnight. It noted that the US equity rally was led by the health care sector, specifically Johnson and Johnson, which announced a potential vaccine for use early next year alongside the start of human testing this September.

Shares of Abbott Laboratories also surged by 6.4 percent in the United States on news that its new testing technology could detect the new virus in as short as five minutes.

Locally, Papa Securities noted that President Duterte’s latest speech had outlined a P200-billion fund for low-income households.

“Recent developments (health care and further local fiscal stimulus) could enforce the strength of the initial support around the 5,000 mark. That said, resistance still remains at the 5,500 area, so we might see a sideways movement between this support-resistance range in the near-term,” the brokerage said.

All counters ended higher, led by the holding firm counter, which rose by 5 percent.

The industrial counter added 4.78 percent, while the financial counter rose by 4 percent.

The mining/oil counter advanced by 2.83 percent, while the services counter added 1.92 percent. The property counter gained 0.98 percent.

Value turnover for the day amounted to P7.41 billion.

There were 132 advancers that outnumbered 53 decliners, while 41 stocks were unchanged.

Aboitiz Equity Ventures Inc. rallied by 7.1 percent while Universal Robina Corp. and Metropolitan Bank and Trust Co. both rose by over 6

percent.

On the other hand, Ayala Corp., the day’s most actively traded company, slipped by 0.34 percent as the conglomerate projected a decline in profits. Property arm Ayala Land Inc. shed 2.58 percent. INQ