US stimulus plan helps buoy PSEi

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The stock market continued to rally on Wednesday on the back of Tuesday’s gains and a new economic stimulus package unveiled by American lawmakers.

The bellwether Philippine Stock Exchange index (PSEi) rose by 1.01 percent or 71.06 points to close at another intraday high of 7,080.62 while the broader All Shares gained 0.53 percent or 22.42 points to finish at 4,222.09.

AAA Equities Head of Research Christopher Mangun said the market advanced further on momentum from the gains made the day before.

“It started the day slightly lower, but a pickup in buying pressure pushed prices higher,” he said.

The bourse opened at 7,019.25 and hit an intraday low of 6,988.27.

Mangun also said the main index might move sideways in the coming trading sessions as investors’ enthusiasm was wearing off.

Regina Capital Development Corp. Managing Director Luis Limlingan said investor sentiment improved after a group of US lawmakers introduced a $908-billion stimulus plan aimed at helping the world’s largest economy bounce back from the impact of the coronavirus pandemic.

“Sentiment got a lift after a group of lawmakers unveiled a $908-billion stimulus plan, which includes more than $200 billion in Paycheck Protection Program for small business loans,” Limlingan explained.

Most local sectors closed higher, with holding firms leading at 1.88 percent. Services and mining and oil shed 0.78 percent and 0.02 percent, respectively.

Total volume turnover was at 3.9 billion shares valued at P8.8 billion.

Losers outpaced winners, 116 to 108, while 39 securities were unchanged.