PSEi rally to 6,254 upon GCQ announcement last week buyers continue to flood the market. Shares on the Philippine Stock Exchange rose, driven by optimism over economies reopening from shutdowns to stem the coronavirus pandemic.
The benchmark PSEi rally 220.48 points or +3.66% to 6,245.65 at the closing bell. The broader All Shares gained 106.59 points or +1.18% to 3,658.31.
Various high-frequency data, such as restaurant bookings and mobility data, shows activity is also gradually recovering in many areas after bottoming out in April.
Still, some analysts caution that the rally is driven mostly by short-covering by speculators who had sold stocks earlier on a global recession.
There are various risks that could hobble the global economy, including the second wave of COVID-19 infections, Sino-U.S. tensions, and rising social unrest in the United States following protests against police brutality. More.
Stock markets are betting on a V-shaped recovery in July-September. But the gap between the stock market and the real economy is growing. Many corporate executives must be now wondering why their companies’ shares are rising so much.
Oil prices climbed more than 1% to a near three-month high amid optimism that major producers will extend production cuts as the world recovers from the coronavirus pandemic.
U.S. West Texas Intermediate crude (WTI) gained 1.9% to $37.50 while Brent crude rose 1.2% to $40.04 a barrel.
All eyes are now on inflation, industrial production, and unemployment data which are due out on Friday, June 5.
Investors will also have their eye on a company set to go public in the next few weeks. Supermarket company MerryMart Grocery Centers Inc. is set to hold its initial public offering (IPO) on Monday, June 15 under the ticker “MM”.
More than 1.312-bil shares valued at P8.245-bil, changed hands. Market breadth was positive as advancers outnumbered decliners, 143 to 59, and 44 issues were unchanged.
Stockbytes PH, June 3, 2020
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