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Local stocks extend climb as vaccinations start

COURTESY OF PHILIPPINE STOCK EXCHANGE, INC.

PHILIPPINE SHARES closed in the green as investors remained optimistic after the country’s coronavirus disease 2019 (COVID-19) vaccinations started.

The benchmark Philippine Stock Exchange index (PSEi) went up by 46.57 points or 0.67% to close at 6,919.54 on Tuesday, while the broader all shares index climbed 14.52 points or 0.34% to 4,179.92.

“The local bourse managed to close the day above the 6,900 level which is seen as a resistance. [On Wednesday], this level could be retested.” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message on Tuesday.

“We see this uptrend coming from sustained investor optimism as there [are] some developments in the arrival and the rollout of COVID-19 vaccines this week,” Philippine National Bank (PNB) Senior Equity Research Analyst Wendy B. Estacio said via e-mail.

AAA Southeast Equities, Inc. Research Head Christopher John J. Mangun noted that the PSEi began the day lower yesterday, which means the optimism that drove it higher at Tuesday’s close may be short-lived.

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“The trading day started slow with the main index in the red in early trading as several concerns remain. Although we saw the PSEi end at its high for the day, we are beginning to see a slowdown in its momentum,” Mr. Mangun said in an e-mail.

“Despite the beginning of the vaccine rollout and easing of restrictions, investors are wary of rising inflation and the prolonged economic recovery,” he added.

Sectoral indices were split on Tuesday. Holding firms increased 98.47 points or 1.4% to finish at 7,114.6; industrials went up by 93.98 points or 1.07% to 8,836.03; and property added 37.65 points or 1.07% to close at 3,528.26.

Meanwhile, financials decreased by 20.97 points or 1.4% to 1,469.60; mining and oil dropped by 50.94 points or 0.54% to 9,329.93; and services went down by 4.23 points or 0.29% to finish at 1,455.61.

Value turnover rose to P9.89 billion on Tuesday with 126.72 billion shares switching hands, from the P8.34 billion with 8.72 billion issues seen on Monday.

Decliners beat advancers, 121 against 105, while 44 names closed unchanged.

Net foreign selling fell to P336.95 million on Tuesday from the P861.24 million seen the previous day.

“This could be due to profit taking as most companies’ earnings results were released this week,” PNB’s Ms. Estacio said.

AAA Southeast Equities’ Mr. Mangun expects the PSEi to reach 7,000 by the end of the week.

“COVID-19 concerns may weigh on the market [on Wednesday] amid the detection of more cases with the more infective strains. Elevated inflation expectations may also cloud sentiment ahead of the release of the February consumer price index data which is on Friday,” Philstocks Financial’s Mr. Tantiangco added. — Keren Concepcion G. Valmonte

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