Stocks surge after strong US rally

By James A. Loyola

The local stock market jumped with its Asian counterparts yesterday following a rally in US bourses on optimism over the passage of a massive US$2 trillion stimulus package.

The Philippine Stock Exchange index (PSEi) surged 253.49 points, or 5.31 percent, to close at 5,027.76 as share prices rose across the board.

“Philippine shares soared investors bet US lawmakers would deliver soon a stimulus bill to rescue the economy from the damage caused by the coronavirus and shutdowns designed to stop its spread,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

Wall Street posted its best performance in nearly 90 years with the Dow Jones Industrial Average surging 11.4 percent to 20,704.91, its biggest one-day percentage increase since 1933.

The Nasdaq gained 8.1 percent to close at 7,417.86, while the broad-based S&P 500 finished the day at 2,447.33, a gain of 9.4 percent.

Philstocks Vice President for Research Justino Calayay Jr. said the “relief rally sent the PSEi past 5,000 as investors placed premium on a record-setting run in US equities overnight.”

“From the opening bell’s 232-point gap, gains ran up to as much as 300-points before buying pressure began to ease up,” he noted. Volume rose to 929 million shares worth P8.3 billion with 158 gainers against 44 losers and 29 unchanged.

Calaycay said that, “For the second day in a row, advancers led decliners, suggesting an underlying creeping optimism. Value flows have likewise started to pick-up providing much-needed support to the upside action.”

Meanwhile, Tokyo stocks surged more than eight percent Wednesday, marking their best percentage gain since 2008, after US lawmakers agreed a $2-trillion coronavirus rescue package and on relief that the Tokyo Olympics was postponed, not cancelled.

The benchmark Nikkei 225 index, which soared more than eighth percent on Tuesday, added another 8.04 percent, or 1,454.28 points, to 19,546.63. (With AFP report)