Metro Manila (CNN Philippines, February 9) — Local stocks performed their strongest since the onset of the COVID-19 pandemic on Wednesday as investors turned bullish on prospects of looser restrictions for Metro Manila, along with Wall Street’s rebound.
The Philippine Stock Exchange index (PSEi) finished at 7,502.48 — up 0.59% from yesterday. The last time the PSEi ended at the 7,500 level was on Feb. 7, 2020 when it closed at 7,507.20.
RCBC chief economist Michael Ricafort told CNN Philippines this came as “new COVID local cases eased to new 1-month lows or the lowest so far this year and consistently, proposals to further ease the alert level to 1 from 2 by March.”
National and local government officials alike have recently been discussing the possibility of placing the capital region to the loosest alert level status, noting the continued decline in fresh infections.
Ricafort said these proposals support the “further re-opening of the economy towards greater normalcy, thereby increasing the capacity/production, sales, earnings, and valuations of some listed companies.”
Prospects of better fourth quarter and full-year 2021 earnings for companies also improved investor sentiment, BDO chief market strategist Jonathan Ravelas told CNN Philippines, adding the purchase of stocks pushed the PSEi higher.
Local stocks also benefited from global market developments, particularly in Wall Street, according to analysts.
“Philippines shares rode on the rebound of Wall Street as investors continued to bargain hunt ahead of Thursday’s key CPI (Consumer Price Index) report,” Regina Capital managing director Luis Limlingan said.
“The latest gains in the PSEi are also supported by improved market sentiment on the US/global stock markets after China state funds bought stocks to support the market, as well as the healthy correction in global oil prices from new 7-year highs recently,” Ricafort added.
Here's an update on the local financial markets for February 9, 2022. #TheExchange pic.twitter.com/gvpRolEqpQ
— CNN Philippines (@cnnphilippines) February 9, 2022
