Stocks sustain rally on US stimulus news

Published December 2, 2020, 4:27 PM

by James A. Loyola

The local stock market managed to sustain the previous day’s rally despite a weak start as investors continued to buy up shares. 

The main index rose 71.06 points or 1.01 percent to close at 7,080.62 with only the Services and Mining and Oil counters retreating. 

Volume eased to 3.9 billion shares worth P8.8 billion as losers beat gainers 116 to 108 with 39 steady. 

“Local shares continued to perform well as the market’s rally kept strong in December. Sentiment got a lift after a group of US lawmakers unveiled a $908 billion stimulus plan, which includes more than $200 billion  in Paycheck Protection Program for small business loans,” said Regina Capital Development Corporation Managing Director Luis Limlingan. 

AAA Equities Head of Research Chris Mangun said “The PSEi continued higher as it drew momentum from the big move that we saw in the previous session. It started the day slightly lower but then a pick up in buying pressure pushed prices higher. Blue chip property and holding firms continue to lead the market’s gains.”