The local stock market followed the previous day’s jump with a stronger rally just before the MSCI rebalancing and over optimism fueled by the fiscal stimulus bill.
The PSEi surged 323.90 points or 5.11 percent to close at 6,665.14 as all sectors advanced.
Volume of trades also spiked, rising to 2.29 billion shares worth P23.8 billion as gainers swamped losers 145 to 60 with 39 unchanged.
“The index continued its hot streak with the effect of the MSCI rebalancing taking place and window dressing coming into full swing, while sentiment overseas was swayed as investors focused on retailers, travel, and leisure companies,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “The U.S. Treasury yields also declined, suggesting that inflation concerns have subsided.“
Philstocks Financial Senior Analyst Japhet Tantiangco said “The local market rallied on the back of optimism towards more fiscal stimulus for the Philippine economy. This comes as the Bayanihan to Arise as One bill gets set for a third and final reading at the House of Representatives.”
He noted that, “The bill, if passed into law and implemented, is seen to boost aggregate spending which in turn would help in the economic recovery.”
AAA Equities Head of Research Chris Mangun said “The market followed through with an even bigger move to the upside. The PSEi is currently up 7.5 percent for the week due to the massive gains in blue-chip holding firms and property issues.”
He explained that, “The rally was mainly due to repositioning with the release of the new MSCI weighting. This is the reversal that we have been waiting for and prices may continue higher as more investors gain confidence.”