PSE INDEX REKINDLES HOPE

The Philippine Stock Exchange (PSE) today rekindled hope of a push up beyond its milestone level as optimism returned on hopes of reviving the economy with news that President Duterte may signal less strict quarantine protocols, resulting in a moderate rise of 76.77 points or 1.12 percent to 6,916.41 points.

All indices were up as investors cheered the possibility of less stringent quarantine rules, with snippets filtering in the exchange that Duterte is set to make an announcement this Monday on the new rules.

The financials were up 0.66 percent, the holding firms by 2.40 percent, mining and oil by 1.98 percent, services, by 0.16 percent, property 0.05 percent, and industrials, by 0.10 percent.

The market has been awaiting a nudge in the economy with the opening of more sectors, resulting in the investors betting on a modified GCQ.

Acting NEDA head Karl Kendrick Chua has been batting for the opening of the economy to push the growth rate that has been stumped by the lockdown that started March of last year.

Value turnover reached P9.55 billion, with 98 gainers, 110 losers and 41 shares unchanged. The tentativeness in the market spurt was due to fears of COVID's lingering effects that were raised when technical analysts sounded the alarm with the big market decline Thursday.

Technical analysts say that a PSE index piercing the support level at 6,700 points could lead to the market going down to the 5,000 level .

This is because of the lack of catalysts to propel the market, plus the expected inflation uptick due to supply problems plaguing meat and vegetable products.

Market bellwether SM Investments rose by 2.8 percent to close at P1,065, with trades of P439 million, while Ayala Land went up by 15 centavos to P39.00.

Dito CME was also up by 16 centavos, while Ayala Energy and Metrobank succumbed to profit taking, dropping, respectively, to 7.80, down 6 centavos, and P50.10, down 90 centavos.

Market analysts say that the announcement by Duterte next Monday will pave the way for the market that has seen the entry of more local investors that saw PSE average daily transactions of P10 billion, almost a 50 percent rise from last year's average daily turnover of P7 billion.

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