The market is continuing its upward movement and is near the previous major resistance of 7000 level. A slew of good news are circulating and this may help sustain the current level of the market. This includes easing Jobless claims, Granular Lockdowns and GCQ implementation starting tomorrow.

The index close at 6912.70 with net foreign buying of 108.8Million, indicating renewed optimism from the investors.

For the blue chip index that led the group included Globe Telecom bouncing after few days of drop, LTG finally found its bottom and Megaworld Corporation

1GLO3.33%

2LTG3.33%

3MEG2.84%

4AC2.65%

5SM1.70%

6GTCAP1.59%

7CNVRG1.59%

8BLOOM1.43%

9ICT1.41%

10URC1.26%

In terms of the indexes, Services sector led the group while finance is still lagging the group.

The market became optimistic with slew of news which will further help businesses in the future.

MECG to GCQ by September 08-30

The government decision to move from MECQ to GCQ will start from September 8 to September 30.  Under the granular lockdown status, Metro manila will be the pilot cities that will select only particular areas with high concentration of COVID19 cases to stay under lockdown. This will give boost to the income sector as there will be more people who can go back to their work. Inspite of the surging cases of more than 22k yesterday, the government followed this route to strike balance on rebooting the economy while implementing measures on containing the virus

Face to Face Classes

Malacanang also stated its willingness to allow certain areas with low covid cases to start face to face classes.

According to Spokesperson Harry Roque

“The initial reaction of the President is if it’s going to be a pilot, and if it is conducted in areas with a really low number of cases, he may allow it.

But the pilot should be in areas with a really low number of cases just so we can pilot it and see if it works, if it can be implemented in other areas”

Jobless Claims

Philippine national statistics has recently disclosed the jobless rate in the Philippines showing better results for July as compared to last month. For the month of July, national unemployment rate eased up to 6.9% while in June this value was up by 7.7%

The market was in red for the day but suddenly closes in green during the pre-closed period. Net foreign buying is at 306.96Million. This is the sixth straight day of foreign accumulation.

Net foreign buying started last August 23 and continues up to today.

The index was in deep red by more than 1.7% for the day untill 11:30am. News about the Delta variant being now affirmed by the World health organization representative Dr. Rabindra Abeyasinghe says that the Delta variant is now the dominant coronavirus variant in the Philippines. Yesterdays Covid 19 cases reach an all time high of more than 22,000 cases.

The sudden reversal in the prices direction lead to an optimistic closing of more than 1%. PSEI market closed higher than last Friday closing to 6855.44

Except for the finance index (-0.67%), all other indexes ended with positive results. Holdings top the list with 2.05% uptick followed by the holding companies lead by AEV. For the individual stocks Aboitiz Power corporation broke its long time resistance with a gain 0f 6.87% and Aboitiz Equity Ventures (AEV) with 6.82% gain.

1 AP6.87%

2 AEV6.82%

3 ICT4.55%

4 PGOLD4.38%

5 URC4.36%

6 ACEN4.24%

7 SM3.49%

8 JFC1.10%

9 AGI0.78%

10 ALI0.75%

11 BPI0.36%

12 SECB0.27%

13 RRHI0.20%

Meanwhile, ASEAN indexes are also exhibiting good index gains for the day.