The stock market finished in the green on Thursday on news of the approval of the 2021 national budget and gains in heavyweight stocks.
The benchmark Philippine Stock Exchange index (PSEi) added 0.73 percent or 51.77 points to end at 7,154.43 while the wider All Shares inched up by 0.42 percent or 17.79 points to close at 4,270.92.
Philstocks Financial Inc. research associate Claire Alviar said the main index bounced back after next year’s outlay was ratified.
On Wednesday, the bicameral conference committee of the Senate and the House of Representatives approved in less than 10 minutes the P4.5-trillion budget, paving the way for both chambers to ratify it in separate sessions.
According to Senate President Vicente Sotto 3rd, Congress hopes to submit the approved budget for President Rodrigo Duterte’s signature before the legislature goes on a break by next week.
Alviar said the approval “erases uncertainties of [a] reenacted budget for next year and gives more hope for [a] gradual economic recovery.”
The Philstocks associate also said gains in large-cap stocks, like Ayala Land Inc., Ayala Corp., SM Prime Holdings Inc., SM Investments Corp. (SMIC) and JG Summit Holdings Inc., helped keep the bourse above 7,100.
Shares of Ayala Land rose by 3.49 percent; Ayala Corp., 2.44 percent; SM Prime, 1.32 percent; SMIC, 1.06 percent; and JG Summit, 0.81 percent on Thursday.
Local sectors were mixed. Industrial led losers at 0.48 percent, while property improved the most at 1.74 percent.
Total volume turnover was at 150.03 billion shares, valued at P7.64 billion.
Advancers led decliners, 121 to 108, while 41 securities were unchanged. with a report from