Stocks rise despite MECQ extension
The local stock market managed to post some gains despite the extension of quarantine measures in the capital region.
The main index inched up by 18.37 points or 0.28 percent to close at 6,487.51 with only the Holding Firms counter giving way to profit-taking.
However, volume dropped to 4.23 billion shares worth P4.73 billion as gainers again beat losers 107 to 92 with 45 unchanged.
“Philippine shares closed moderately following the Fed's decision to leave rates near zero,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “investors are also continuing their rebalancing ahead of the month-end window-dressing and the release of more corporate earnings.”
Philstocks Financial Research Associate Claire Alviar said “Last-minute bargain hunting lifted the PSEi amid increased hopes that the Modified Enhanced Community Quarantine (MECQ) until May 14 would help contain the spread of the Covid-19 cases.”
AAA Equities Head of Research Chris Mangun said “The PSEi inched higher despite starting the day much weaker. The steady decline in the daily average of new COVD-19 cases has generated some optimism among investors.”
He added that, “the extension of current restrictions on NCR Plus for the next two weeks squashed fears of more constraints.”
Mangun noted that, “Trading volumes remain low which signals a lack of interest from investors due to the uncertainty and the lack of justification for high valuations. Expectations of dismal Q1 economic data, which is set to be released in the following week, is keeping the sentiment subdued.”