The Philippine stock market jumped on the passage of the pandemic relief law and the start of month’s end window-dressing.
The main index surged 144.53 points or 2.33 percent to close at 6,341.24 as share prices rose across the board.
Volume also spike to 1.26 billion shares worth P13.09 billion as gainers beat losers 140 to 74 with 47 unchanged.
“Local shares were aggressively bought up as early window dressing for May commenced, and while shares were still at bargain levels,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He noted that, “In addition, cases of Covid-19 have continued to decelerate, prompting investors to speculate that the country will transition to looser restrictions next month.”
Limlingan said “Recent reports from credit rating agencies were also favorable. According to S&P Global Ratings, the Philippine government is best placed to handle shocks from a rise in interest rates, effectively making debt refinancing less of a problem for the country in the next few years. “
Philstocks Financial Research Associate Claire Alviar sad “The local bourse climbed amid optimism on the passage of Bayanihan to Arise as One Act (Bayanihan 3) on second reading.”
She explained that, “This lifted sentiment as the Bayanihan 3 would support those Filipinos who got affected by the Covid-19 pandemic and may also increase consumer spending which is beneficial to the economy.”
AAA Equities Head of Research Chris Mangun said “The market roared back to life as the PSEi ended 2.3 percent higher, its biggest daily advance in the last three months. Several blue chips ended with substantial gains, led by large-cap holding firms and property issues.”
“This is the first time that investors were willing to come in at higher prices after just supporting most issues as they went lower in the last three months. Investors may start to gain confidence and finally appreciate the positive vaccine developments,” he added.
Mangun said “The big question is whether this is the beginning of a new rally or if it is just window-dressing for the end of the month.”