The local stock market made a strong bounce to recover most of Friday’s losses as investors moved in to buy cheaper shares amid positive news on vaccines and the economy.
The main index surged 202.14 points or 3.06 percent to close at 6,814.76 as the Property sector led gains across the board.
Volume also picked up to 32.11 billion shares worth P9.98 billion as gainers beat losers 130 to 82 with 45 unchanged.
“Philippine shares began February on a more ubpeat tone closing above 6,800 as the Gamestop ruckus and vaccine news that stressed the market slowly dissipated to make way for earnings releases and the latest inflation data,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “there was encouraging news over the weekend when it was reported that the Philippines will be receiving around 5.6mn doses of COVID19 vaccines produced by Pfizer and AstraZeneca Plc within this quarter under COVAX facility.
Philstocks Financial Senior Analyst Japhet Tantiangco said “The local market bounced back this Monday as bargain hunters took opportunities out of its steep decline last week.”
He noted also that, “The 52.5 reading of the Philippines’ January 2021 IHS Markit manufacturing purchasing managers’ index, which signifies an expansion in the manufacturing sector also spurred optimism.”
“It was a very good day for the PSEi after it rallied more than 200 points. Aside from the technical bounce that we were already expecting, the sentiment got a boost from January manufacturing numbers,” said AAA Equities Head of Research Chris Mangun.
He said the ”Most Asian stock markets also saw substantial gains which may have also improved the sentiment.”