PSEi climbs to 6,500 level amid easing tensions
THE MAIN INDEX returned to the 6,500 level on Tuesday amid easing tensions in the Middle East and expectations of slower Philippine inflation this month.
The Philippine Stock Exchange index (PSEi) rose by 0.97% or 62.72 points to end at 6,506.80 on Tuesday, while the broader all shares index improved by 0.61% or 21.19 points to close at 3,446.90.
“This Tuesday, the local market rose by 62.72 points (0.97%) to 6,506.80 as investors took positive cues from Wall Street overnight. Investors cheered Iran’s statement that it will not further escalate its conflict with Israel as it lifted worries over higher oil prices,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.
“Philippine shares settled above the 6,500 mark as investors showed renewed interest in stocks following a recent dip from the Israel-Iran geopolitical tensions last week,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.
On Wall Street, the Dow Jones Industrial Average rose 253.58 points or 0.67% to 38,239.98; the S&P 500 gained 43.37 points or 0.87% to 5,010.60; and the Nasdaq Composite gained 169.30 points or 1.11% to 15,451.31, Reuters reported.
Iran said on Friday that it had no plan to retaliate following an apparent Israeli drone attack within its borders, which in turn followed an Iranian missile and drone attack on Israel days before.
“The statement from National Economic and Development Authority Undersecretary Rosemarie G. Edillon saying that an uptick in inflation for April is unlikely as the country is already in the harvest season also boosted sentiment,” Mr. Plopenio said.
Inflation accelerated for the second straight month in March to 3.7%, as prices of food products continued to rise. In particular, rice inflation quickened to 24.4% in March, the highest since 24.6% in February 2009.
The Philippine Statistics Authority will release April inflation data on May 7.
All sectoral indices rose on Tuesday, led by industrials, which went up by 1.50% or 126.57 points to 8,526.01. Property climbed by 1.23% or 30.28 points to 2,488.65; services rose by 1.19% or 21.62 points to 1,831.52; mining and oil went up by 0.97% or 82.80 points to 8,559.95; financials gained 0.61% or 12.55 points to end at 2,047.78; and holding firms added 0.58% or 34.60 points to close at 5,951.62.
“Among the index members, Century Pacific Foods Inc. was at the top, rising 5.63% to P37.50. BDO Unibank, Inc. lost the most, dropping 2.18% to P143.60,” Mr. Plopenio said.
Value turnover went up to P5.11 billion on Tuesday with 554.76 million issues changing hands from the P3.64 billion with 564.35 million shares traded on Monday.
Advancers beat decliners, 102 against 73, while 51 names were unchanged.
Net foreign selling dropped to P508.35 million on Tuesday from P795.73 million on Monday. — R.M.D. Ochave with Reuters