Stocks rise on budget approval

Published December 10, 2020, 4:37 PM

by James A. Loyola

The local stock market bounced today  after some profit-taking in the previous session as investors cheer the ratification of the national budget and news on the US stimulus plan.

The Philippine Stock Exchange index (PSEi) gained 51.77 points, or 0.73 percent, to close at 7,154.43 although sectoral indices were evenly mixed.

Volume dropped to 150.03 billion shares worth P7.64 billion as gainers continued to outpace losers 121 to 108 with 41 unchanged.

“Local shares closed higher as investors weighed the prospects of new fiscal stimulus in the US,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

Philstocks Financial Research Analyst Claire Alviar noted that, “The PSEi rose with the ratification of the P4.506 trillion national budget for 2021 which is expected to be passed before Christmas. It erases uncertainties of reenacted budget for next year and gives more hope for gradual economic recovery.”