Business

Stocks rally to end higher for 3rd week

Stocks rally to end higher for 3rd week

MANILA, Philippines — The stock market rallied back to the 6,900 level yesterday to end in positive territory for the third straight week.

The benchmark Philippine Stock Exchange index (PSEi) finished at 6,907.79, up 32.08 points or 0.46 percent, while the broader All Shares index rose to 4,174.65, higher by 20.29 points or 0.48percent.

Total value turnover reached P5.8 billion. Market breadth was positive, with 118 advancers to 90 decliners, while 50 issues were unchanged.

Among the top movers were SM ( up one percent), Ayala Land ( up1.6 percent), and Ayala Corp. (up 1.2 percent), accounting for 26.5 points of the total rally.

Meanwhile, net foreign buying persisted for the second straight week, excluding block sales, at P608 million, while average value turnover got thinner at P5.6 billion from last week’s P6.8 billion.

Japhet Tantiangco, an analyst at PhilStocks Financial Inc., said the local bourse rose on the back of the surge in foreign direct investments and higher state spending on infrastructure.

He said these point to improvements in the country’s economic condition compared to last year.

“The local market also took cues from Wall Street’s performance overnight wherein the S&P 500 reached a record high close,” he said.

Luis Limlingan of Regina Capital added that Philippine shares climbed above the 6,900 level to finish the week as investors shrugged off a key inflation report in the US that showed a bigger-than-expected increase in price pressures.

The US economy’s rebound from the pandemic is driving the biggest surge in inflation in nearly 13 years, with consumer prices rising in May by five percent from a year ago.

On the pandemic front, the Philippines’ COVID-19 task force said it allowed the reopening of gyms, museums, and other establishments in Metro Manila and surrounding areas at 20 to 30 percent of their capacities.