The PSEi jumped 0.11% to end at 6,566.83, while the broader all shares index rose 0.26% to 3,964.78
Stocks edged up on Wednesday as investors continue to gauge the Philippine government’s response to the country’s rising coronavirus cases.
The Philippine Stock Exchange index (PSEi) jumped 7.75 points or 0.11% to end at 6,566.83 on Wednesday, while the broader all shares index rose 10.63 points or 0.26% to 3,964.78.
We think the market has not yet fully priced in the possibility of a wider reimposition of stricter quarantine measures, China Bank Securities Corp. Research Associate Jason T. Escartin said via e-mail. The PSEi huddled in the 6,500-6,600 support zone, a significant level previously seen right before the government imposed its first round of lockdowns in mid-March 2020.
The market held its ground again [on Wednesday] and ended flat on lighter selling pressure, AAA Southeast Equities, Inc. Research Head Christopher John J. Mangun said in a separate e-mail.
There is still a lot of concern regarding the possibility of a hard lockdown amid soaring COVID-19 cases. The government just restricted the entry of foreigners and has limited the entry of Filipinos to just 1,500 per day, he added.
The new travel restrictions were implemented due to the rising number of daily COVID-19 infections in the country. COVID-19 cases jumped to more than 635,000 on Wednesday after the Health department reported 4,387 new infections.
All sectoral indices finished in the green except for property, which dropped 17.09 points or 0.52% to end at 3,262.47.
Meanwhile, services rose 10.02 points or 0.7% to finish at 1,435.23; financials advanced 5.93 points or 0.42% to 1,404.28; industrials gained 26.52 points or 0.31% to 8,527.89; holding firms added 10.8 points or 0.16% to 6,698.36; and mining and oil jumped 13.32 points or 0.15% to end at 8,484.85.
Value turnover rose to P6.85 billion ($0.14 billion) on Wednesday with 4.62 billion shares switching hands, up from the P5.9 billion ($0.12 billion) with 3.3 billion shares traded on Tuesday.
Advancers outnumbered decliners, 122 versus 94, while 47 names finished unchanged.
Net foreign selling dropped to P256.96 million ($5.28 million) on Wednesday from the P298.84 million ($6.14 million) seen on Tuesday.
Mr. Mangun said he expects the PSEi to finish between 6,500 and 6,600 until the end of the week.
The sideways trend is a sign of uncertainty, the market [can’t decide] whether it [wants] to go higher or lower, hence the sideways trend, he added.
In our view, price action in the next few days would hinge on the government’s response to rising case counts, China Bank Securities’ Mr. Escartin said.
At the worst case, a blanket lockdown may be imposed, which may cause the PSEi to break below its 6,500 support level, with 6,200 as the next support. At best, the market may continue trading between 6,500 and 6,710 as uncertainty remains high over the outcome of current area-specific lockdowns and restrictions, he said.