Stocks bounce on higher remittances

Published December 16, 2020, 3:22 PM

by James A. Loyola

The PSEi surged to just a hair shy of the 7,300 level after government reported higher remittances from overseas Filipinos.

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The main index jumped 71.97 points or 1.00 percent to close at 7,299.70 although the Services sector was in the red.

Volume was slightly lower at 117.64 million shares worth P9.31 billion as gainers beat losers 133 to 90 with 47 holding steady.

“The local bourse bounced back as investors were cheered by the improvement in October 2020 cash remittances,” said Philstocks Financial Senior Analyst Japhet Tantiangco.

Regina Capital Development Corporation Managing Director Luis Limlingan said “Philippine shares closed higher on the back of better chances to see the US Congress passing another fiscal relief. Congress is likely to decide whether to pass fiscal relief measures or to push consideration of most of them to next year.”

AAA Equities Head of Research Chris Mangun said “The market started the day slightly lower but then quickly recovered and then moved higher throughout the session. Last-minute buying pushed it to close at its higher level for the day, just a few points shy of its 10-month high, which it hit last Monday.”

He added that, investors were optimistic that the higher remittance figure “shows a return to normalcy after all the economic chaos the pandemic has caused this year.”