The Philippine Stock Exchange index (PSEi) on Monday, Oct. 11, surged to its highest level since January this year, as investors expect rosy third quarter economic and corporate results.
The main index jumped 217.15 points or 3.14 percent to close at 7,124.01 as Property and Bank stocks led the rally across the board.
This marked the PSEi’s highest close since Jan. 21, 2021, which was also exactly the same level in Oct. 31, 2018 at 7,140.29.
Security Bank Corporation led the index gainers, surging 8 percent to P118.80 per share while Wilcon Depot was at the tail-end, falling 13.02 percent to P30.40 per share.
The most actively-traded stock was Converge with trades amounting to P1.18 billion. It was also the day’s second biggest gainer as its share price rose 7.14 percent to P36.00 per share.
Volume was hefty with 2.44 billion shares worth P11.76 billion changing hands as gainers beat losers 122 to 60 with 58 unchanged.
However, foreigners were net sellers with net outflows amounting to P820.74 million.
“Investors bought into local shares as many began to bet ahead of the third quarter earnings, gross domestic product data, and the following year as the last quarter of trading is underway,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “Many are exploring the possibility of the economy reopening with Covid cases declining. In addition, many are waiting for other catalysts abroad following the release of a weaker-than-expected jobs report last Friday and fears of stagflation.”
For this week, the attention of stateside investors will be directed to the release of third quarter earnings of major banks, inflation data, initial jobless claims, retail sales, and preliminary Michigan consumer sentiment while FOMC minutes will be published on October 14.
Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local bourse jumped as the Philippines’ improving COVID-19 situation raises hopes of the social restrictions in the country being eased after October 15.”
He noted that, “The stabilizing supply of vaccines in the country, the continuous inoculation campaign, and the downtrend in cases, sparks hopes that the local economy will be further reopened.”