Share prices ended higher yesterday on bargain hunting while the local currency closed lower as the country continues to reel under the pressure of rising new COVID-19 cases and consequent movement restrictions, hitting investor sentiment.
The Philippine Stock Exchange index (PSEi) was up 193.49 points to 6,513.68, a 3.06 percent hike. The broader all shares index was up 76.22 points to 4,053.16, a 1.92 percent hike.
Gainers edged losers 101 to 98 with 41 stocks unchanged. Trading turnover reached P8.65 billion.
The peso closed at 50.645 to the dollar, down from 50.481 on Friday. It opened at 50.45, hitting a high of 50.43 and a low of 50.66. Trading turnover reached $967.5 million.
The Philippine peso edged firmer and the bourse soared as much as 2.7 percent to mark its best intraday performance since the start of the month.
The Philippines has been reeling under the pressure of rising new COVID-19 cases and consequent movement restrictions, hitting investor sentiment. So far in the quarter, shares are down 6 percent while the peso has weakened 3.4 percent.
Japhet Tantiangco, analyst at Philstocks Financial Inc., said the market’s hike was “on the back of bargain hunting.”
“Investors took opportunities out of the market’s sharp drop last Friday leading to Monday’s gains. Trading was tepid, however, registering a net value turnover of P5.49 billion, below last week’s average of P7.36 billion, and the year-to-date average of P7.24 billion,” he said.
“This shows that many investors are staying on the sidelines due to the risks brought by our COVID-19 situation on our economic and corporate outlook,” Tantiangco added.
Foreign funds were net seller worth P1.86 billion.
Most actively traded AC Energy Corp. was down P0.18 to P9.22. Converge Information and Communication Technology Solutions Inc. was down P0.35 to P27. Emperador Inc. was up P2 to P14.20. Ayala Land Inc. was up P1.10 to P32.80. Universal Robina Corp. was up P7.90 to P136.90. DMCI Holdings Inc. was up P0.09 to P5.99. Monde Nissin Corp. was up P0.36 to P15.90. SM Investments Corp. was up P52 to P964. SM Prime Holdings Inc. was up P0.95 to P33.20. Globe Telecom Inc. was up P50 to P2,010.
Malaysia’s ringgit fell to as much as 4.2415 per dollar, its lowest since July 2020, while the Kuala Lumpur share index was down as much as 0.7 percent, their worst intraday drop in nearly two weeks, as reports that the Prime Minister is set to resign turned investors cautious, Reuters reported.
Malaysian Prime Minister Muhyiddin Yassin was expected to step down on Monday, according to media reports, after he lost his majority in parliament, pushing the country into a period of uncertainty as it grapples with surging coronavirus disease 2019 (COVID-19) cases and an economic downturn.
Dollar/ringgit traded higher following weekend news regarding Muhyiddin’s resignation, analysts at Maybank said in a research note, adding that uncertainty on transfer of leadership weighs on sentiment in the interim.
“Uncertainty on who takes over the leadership will weigh on sentiment in the interim, but this could turn around if there is a quick agreement on who will be appointed,” they said.
Analysts at Maybank expect the ringgit to ease off to between 4.220 and 4.240, with immediate resistance at 4.2440 holding for now.
In Thailand, the baht slipped and equities were down a percent to hit their lowest since mid-May even after second-quarter economic growth was unexpectedly strong. Gross domestic product expanded 7.5 percent in the June quarter from a year earlier against a 6.4 percent growth forecast in a Reuters poll. — Ruelle Castro, Reuters
