Stocks race past 6,900, post three-month high

MANILA, Philippines — With foreign funds aggressively buying local stocks, the main index raced past another threshold to finish yesterday’s trading at its highest level in over three months.

The 30-company benchmark Philippine Stock Exchange index or PSEi gained 92.82 points (1.36 percent) to close at 6,902.54, its highest since March 3.

Similarly, the broader All Shares index rose 43.08 points (1.04 percent) to end at 4,160.21.

“The market rallied higher after trade data and manufacturing output for the month of April was released. Large-cap property blue chips, which remain heavily depressed, continue to lead the entire PSEi higher. Trading volume also picked up,” said Chris Mangun of AAA Equities.

Among the top gainers were index heavyweights Ayala Land (up 3.7 percent), Ayala Corp. (up 4.2 percent) and SM Prime (up 2.2 percent), accounting for 57 points of the total rally.

Net foreign buying continued for a second day, reaching over P1 billion. Overseas investors made up 77 percent of the total P7.58 billion value turnover yesterday.

Traders said aside from overseas net buying, stocks were also buoyed by the continued reopening of the economy as the vaccine rollout picks up pace, and trade data point to recovery.

On the trade front, both imports and exports surged in April, coming off lower bases last year as a strict lockdown measure was first imposed.

“The substantial growth is mainly because of the massive shortage in semiconductors globally, which happens to be the country’s top export,” Mangun said.

“The data shows what we already knew, the tighter restrictions halted the economy’s strong recovery, however, the decline was not as significant as most expected it to be, which is why we are seeing some optimism from investors. With the pace of vaccination and the election, (which always boosts the economy due to higher spending), just right around the corner, there is no doubt the economy will resume its strong recovery,” he said.