Stocks advance as government relaxes lockdown

SHARES climbed further on Tuesday after the government eased quarantine restrictions in some parts of the National Capital Region (NCR) Plus bubble.

The Philippine Stock Exchange index (PSEi) went up by 59.24 points or 0.85% to close at 6,976.73 on Tuesday, while the broader all shares index gained 31.52 points or 0.75% to end at 4,222.88.

“As [the] government continued with its easing of restrictions after June 15, this further [improved] the sentiment among investors, thus further moving the markets upward,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message.

The government on Monday announced that Metro Manila and Bulacan will be placed under general community quarantine (GCQ) status “with some restrictions,” while Cavite, Laguna, and Rizal will remain under GCQ “with heightened restrictions.”

Meanwhile, Philstocks Financial, Inc. Research Associate Claire T. Alviar said the “strong performance” of the S&P 500 and Nasdaq may have also contributed to the local market’s close on Tuesday.

“Overnight, the S&P 500 and the Nasdaq closed at record highs due to the strong performance of the tech shares,” Ms. Alviar said in a Viber message yesterday.

Overnight, the S&P 500 and Nasdaq closed at record highs, helped by tech names, though the Dow Jones Industrial Average fell 0.25%, Reuters reported.

Asian shares rose early on Tuesday, tracking Wall Street higher, though investors looked to a much-anticipated Federal Reserve policy meeting to see if the central bank would signal any change to the US monetary policy outlook.

Back home, majority of sectoral indices posted gains on Tuesday except for financials, which lost 5.25 points or 0.35% to 1,482.83.

Meanwhile, industrials climbed by 196.58 points or 2.09% to 9,568.01; mining and oil went up by 192.30 points or 2.04% to 9,592.38; holding firms improved by 92.47 points or 1.33% to close at 7,027.79; property gained 25.93 points or 0.76% to finish at 3,429.14; and services increased by 2.36 points or 0.15% to 1,562.82.

Value turnover rose to P8.03 billion on Tuesday with 5.13 billion shares switching hands, from the P6.32 billion with 3.93 billion issues traded the previous day.

Advancers narrowly beat decliners, 106 against 101, while 59 names closed unchanged.

Foreigners turned sellers with P58.79 million in net outflows on Tuesday from the P20.36 million in net purchases seen on Monday.

AB Capital Securities, Inc. Junior Equity Analyst Lance U. Soledad said he expects the market to trade between 6,900 to 7,000 on Wednesday.

“We might see some profit taking as what we saw earlier in the session [on Tuesday] given that the index is in overbought levels,” Mr. Soledad said in a Viber message. — K.C.G. Valmonte with Reuters

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