Stocks rise on signing of CREATE Act

Published March 29, 2021, 4:12 PM

by James A. Loyola

The local stock market rose despite the lockdown as the signing of the stimulus law prompted investors to pick up bargains.

PSE file photo

The PSEi rose 63.15 points or 0.97 percent to close at 6,607.78 although the Industrial and Mining and Oil counters retreated.

Volume improved but was still low at 2.88 billion shares worth P7.27 billion as losers beat gainers 116 to 97 with 44 unchanged.

“Shares continued to rally as investors and business groups welcomed the signing of the much-awaited CREATE into law, noting the reduction in corporate income tax rate would support recovery,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “Sentiment was also carried over from the region as U.S. stocks finished sharply higher Friday, rallying late in the trading session, and booking weekly gains to wrap up a turbulent week for equity benchmarks.”

Philstocks Financial Senior Analyst Japhet Tantiangco said “The local bourse rallied as bargain hunters took advantage of the market’s decline last Friday as well as its early dip this Monday.”

He noted that, “Foreign funds also gave our market a boost with net foreign buying this Monday registering P30.43 million.”

“The market proved its resiliency as it ended higher despite starting the day with a substantial loss. The tightening of quarantine restrictions caused some panic selling at the open however, buyers were quick to come in and pick up shares at cheaper prices,” said AAA Equities Head of Research Chris Mangun.

He noted that, “The optimism may be coming from the government’s commitment to the economy’s recovery despite the recent setback.“