Philippine stocks see best week since June as virus slows, foreign buying up

Reuters

Posted at Oct 23 2020 03:38 PM

MANILA - Philippine stocks surged 2.2 percent on Friday closing at 6,484.06 to end the week with their biggest gain since June, bolstered by the easing of restrictions as new coronavirus cases showed signs of slowing.

The Philippine stock exchange index saw a near 10 percent weekly gain, with shares of food and real-estate companies climbing most, as investors hoped for increased footfall in malls and hotels after curfew hours were trimmed earlier this week.

The rally was boosted further by foreign investors, as new daily coronavirus cases slowed in the last week and the government moved to reopen the economy, signalling better economic prospects, said Nicholas Mapa, ING's senior economist for the Philippines.

"This may be the reason for the recent rally, but we'll have to monitor the COVID-19 developments going forward," he cautioned.

Data from Refinitiv showed that foreigners, while still net sellers of Philippine equities so far in October, pumped in about 557.44 million pesos ($11.5 million) into Philippine equities across the last two sessions.

Yields on the Philippine ten-year benchmark bond, usually seen as a safer investment than stocks, have also climbed recently, signalling the return of optimism.

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