The PSE market took a breather today as it manage to have a good trading day going up by 1.55% closing at 6,576 following what could have been bargain hunting due to the sudden decline of the index for the past few days.

Market is trying to absorb all the news now whether the concern flag out for the past few days will happen as the current daily case is still within the 6k range. Just now OCTA research group has announced that the positivity rate in NCR have increase from 1.0 to 1.15 signifying a significant transmission rate especially that the Delta variant is now seen on some areas. OCTA research fellow Guido David have stated according to The Philippine Star that the projection of 8,000 new cases have a possibility to happen.

On the other hand International credit watcher Moody’s investor have said that our country’s credit growth is heading for a rebound by 5% in 2021 and 15% in 2022. This is in relation to the Banks lending growth by 13.6% before the pandemic happened, according to Moody’s.

“The Philippine banking system is mainly funded by customer deposits with minimal reliance on wholesale funding, which protects the banks’ funding profiles from the effects of excessive market volatility,” BSP activity of maintaining the credit rates at its lowest have help offset will support our banking system.

This is however lower than its previous expectations of 6.3%

The positive US market movement together with the European and Asian markets for the past few days could have improved the market sentiment as well.

US Indexes

European Indexes

Asian Indexes

The market sentiment is still fearful as prevailing news on the implementation of stricter lockdown is seen on major news. The President is mulling the implementation of stricter protocols due to the reported local cases of the Delta Variant as reported in his live telecast. PSEI fell down by -1.68% with foreign investors continuing to sell market equities with a net foreign selling of -572,264,915.

Meanwhile Asian Development bank (ADB) has maintained its economic growth outlook forecast on the Philippines at 4.5 percent in 2021 and 5.5percent in 2022.

This forecast is too low as compared to the government goal of having 6-7% growth this year.

According to ADB chief economist Yasuyuki Sawada the recovery of the Asian countries from the pandemic is in progress however we might see tempered growth due to different Variant of the Virus and delays on vaccine rollout

Globally, US markets recovered from the fearful trading the other day as Dow jones index was up by 1.62%, S&P500 up by 1.52% and Nasdaq composite index was up by 1.57%

The European market recovered as well, the FTSE European index was up by 0.54%

Asian equities rebounded as well, leaving PSE index lowest among its peers