Stocks up on easing tensions, remittance data
PHILIPPINE SHARES rebounded on Wednesday as worries over tensions between Russia and Ukraine eased and after data released on Tuesday showed remittances hit all-time high last year.
The benchmark Philippine Stock Exchange index (PSEi) went up 142.88 points or 1.95% to close at 7,452.82 on Wednesday, while the broader all shares index advanced 70.34 points or 1.82% to 3,930.54.
“The rally is fueled by optimism on signs that diplomacy is working towards further de-escalation of tensions between Russia, Ukraine and the NATO allies,” Cristopher Adrian T. San Pedro, Equity Trader Unicapital Securities, Inc. said in a Viber message.
Kyiv appeared to blame Russia for a cyberattack on Tuesday as US President Joseph R. Biden, Jr. warned that more than 150,000 Russian troops were still amassed near Ukraine’s borders after Moscow’s announcement of a partial pullback was met with skepticism, Reuters reported.
“The country’s robust cash remittances for 2021 also boosted sentiment,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
Data released by the Bangko Sentral ng Pilipinas (BSP) on Tuesday showed cash remittances coursed through banks rose by 5.1% to $31.418 billion in 2021 from $29.903 billion in 2020.
Last year’s remittance growth is a turnaround from the 0.8% drop in 2020 but still slower than the 6% expansion estimated by the central bank.
Cash remittance inflows in 2021 exceeded the previous record of $30.133 billion in 2019 before the pandemic.
The BSP expects cash remittances to grow by 4% this year.
AAA Southeast Equities, Inc. President William M. Cabangon said Converge Information and Communications Technology Solutions, Inc., which gained 8.04%, was the biggest winner among index names.
“This was after reports came out that the company is signing a deal with Elon Musk’s SpaceX. The partnership would allow Musk to offer internet connectivity beamed from satellites to the Philippines,” Mr. Cabangon said in a Viber message.
All sectoral indices ended in the green on Wednesday. Property jumped 133.68 points or 3.98% to 3,484.98; services advanced 45.66 points or 2.39% to 1,950.38; industrials climbed 177.40 or 1.70% to 10,588.65; mining and oil gained 182.91 points or 1.63% to 11,359.29; holding firms rose 74.61 points or 1.06% to 7,101.30; and financials went up 11.94 points or 0.69% to 1,737.86.
Value turnover increased to P9.53 billion with 1.16 billion shares switching hands on Wednesday from the P8.03 billion with 1.21 billion issues traded on Tuesday.
Advancers beat decliners, 123 versus 63, while 49 names closed unchanged.
Foreigners turned buyers with P893.43 million in net purchases seen on Wednesday versus the P263.59 million in net outflows seen the previous trading day. — M.C. Lucenio with Reuters
