PSEi crosses 7,000 barrier, ends week higher

MANILA, Philippines — Stocks continued to trade higher yesterday as positive factors on the local front and abroad propelled investors to accumulate more shares.

The Philippine Stock Exchange index (PSEi) closed at 7,002.26 – a four-and-a-half month high – up 38.25 points or 0.55 percent, while the broader All Shares gauge finished 19.54 points or 0.46 percent higher at 4,294.97.

In a market commentary, AB Capital Securities said the PSEi reentered the 7,000-level the first time since Feb. 16 – on market-on-close buying.

“The market rallied for the second straight week on the back of the better manufacturing PMI and unemployment data. Net foreign selling persisted for the third straight week with P292 million excluding block sales,” it said.

Total value turnover reached P5.848 billion. Market breadth was positive with 108 gainers to 100 losers, while 36 issues were unchanged.

Michael Ricafort, lead economist at Rizal Commercial Bank Corp., said any sustained breach of the main index above the psychological 7,000-mark could potentially re-test the 7,100 to 7,400 immediate highs posted earlier this year.

Japhet Tantiangco, an analyst at PhilStocks Financial Inc., said investors continue to feel optimistic about the improvements in the Philippine economy, particularly the unemployment rate.

“Investors continued to digest the improvements in the Philippines’ May employment figures and June IHS Markit manufacturing PMI. Investors were also cheered by the improvements in the Philippines’ COVID-19 situation with the country now classified as a low risk area by the Department of Health,” he said.

Online platform Trading Economics also attributed the PSEi’s advance to positive cues from US stocks overnight, with the S&P 500 ending at a record high close for a sixth straight session, encouraged by data showing initial jobless claims fell to a fresh 15-month low of 364,000, while job cuts were the lowest in 21 years.