MECQ finally calms market, but grim growth data lurks

The benchmark Philippine Stock Exchange Index (PSEi) gained on Wednesday as investors digested a slew of earnings reports and ahead of the government’s disclosure of the second quarter economic data.

The PSEi closed higher by 1 percent or 58.08 points to 5,833.58 while the broader all-shares index was up 0.86 percent, or 29.2 points, to 3,456.29.

All subsectors ended in positive territory, with mining and oil and financials leading the way with respective increases of 3.32 percent and 2.6 percent.

Chris Mangun, research head at stock brokerage firm AAA Equities, said investors also welcomed the less restrictive modified enhanced community quarantine (MECQ).

“Most businesses remain operational amid the lockdown. Public transport has been limited to inhibit nonessential travel, but essential goods and businesses remain functional,” he said.

Mangun, however, cited selling pressure increasing near the end of the session on Wednesday “as investors remain cautious” on the second quarter gross domestic product report. Some economists are projecting a deeper economic contraction due to the COVID-19-related lockdowns.