Share prices on the Philippine Stock Exchange rallied more than 2% on Wednesday as investors cheered the passage of a third stimulus package measure by the House of Representatives of second reading.
The bellwether PSEi gained 144.53 points or 2.33% to 6,341.24 at the closing bell. The broader All Shares increased by 64.61 points or 1.68% to close at 3,899.39.
“The local bourse climbed by 144.53 points to 6,341.24 amid optimism on the passage of Bayanihan to Arise as One Act (Bayanihan 3) on second reading,” Philstocks Financial equity analyst Claire Alviar said.
“This lifted sentiment as the Bayanihan 3 would support those Filipinos who got affected by the COVID-19 pandemic and may also increase consumer spending which is beneficial to the economy,” she added.
The House of Representatives on Tuesday approved on second reading the Bayanihan to Arise As One bill or Bayanihan 3 stimulus package, which seeks to provide P401-billion worth of interventions to help Filipinos amid the coronavirus disease 2019 pandemic.
Under the bill, financial aid worth P2,000 will be provided to all Filipinos, regardless of their economic status, in two tranches.
“This is the first time that investors were willing to come in at higher prices after just supporting most issues as they went lower in the last three months,” AAA Equities head of research Chris Mangun said.
“Investors may start to gain confidence and finally appreciate the positive vaccine developments. The big question is whether this is the beginning of a new rally or if it is just window-dressing for the end of the month,” he said.
More than 1.261 billion shares valued at P13.086 billion, changed hands. Advancers led decliners, 140 to 74, and 47 issues were unchanged.—LDF,GMA News