PHL stocks rise on strong peso, corporate results
PHILIPPINE SHARES closed higher on Tuesday on positive sentiment after the peso returned to the P56 level against the dollar and strong corporate results.
The Philippine Stock Exchange index rose by 0.56% or 37.08 points to end at 6,650.44 on Tuesday, while the broader all shares index improved by 0.31% or 11.46 points to finish at 3,610.
“The local market bounced back this Tuesday. The peso’s strengthening against the dollar has helped in lifting the market. Investors’ appreciation of second-quarter and first-half corporate results also helped in bringing the market up,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
On Tuesday, the peso closed at P56.96 per dollar, rising by 35.6 centavos from its P57.316 close on Monday, based on Bankers Association of the Philippines data.
This was the local unit’s best close in almost four months and was the first time it ended at the P56 level since its P56.808-a-dollar finish on April 15.
“Philippine shares rebounded, tracking their Asian peers, as investors continue to take positions ahead of the upcoming BSP (Bangko Sentral ng Pilipinas) meeting this Thursday,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
A BusinessWorld poll conducted last week showed that nine out of 16 analysts surveyed expect the Monetary Board to deliver a 25-basis-point (bp) rate cut at its meeting on Thursday (Aug. 15), bringing the target reverse repurchase rate to 6.25% from the current over 17-year high of 6.5%.
On the other hand, seven others expect the BSP to keep rates steady this week.
From May 2022 to October 2023, the BSP hiked borrowing costs by 450 bps.
“Meanwhile, Wall Street opened the week with choppy trading as investors awaited key inflation reports that could provide direction after last week’s volatility, driven by a weak jobs report and the unwinding of the yen carry trade,” Mr. Limlingan added.
Majority of sectoral indices closed higher on Tuesday. Property climbed by 1.69% or 44.13 points to 2,649.16; industrials went up by 0.56% or 50.70 points to 9,045.97; holding firms rose by 0.43% or 25.03 points to 5,743.04; and services inched up by 0.37% or 7.74 points to 2,086.95.
Meanwhile, mining and oil fell by 1.09% or 89.42 points to 8,102.52; and financials dropped by 0.18% or 3.66 points to 1,984.21.
“GT Capital Holdings, Inc. was the index’s top performer for the day, jumping 4.73% to P620. JG Summit Holdings, Inc. was the worst index performer, plunging 4.17% to P24.15,” Mr. Tantiangco said.
Value turnover climbed to P4.98 billion on Tuesday with 607.05 million shares changing hands from the P3.67 billion with 505.37 million issues traded on Monday.
Decliners beat advancers, 100 versus 81, while 64 issues were unchanged.
Net foreign buying dropped to P121.63 million on Tuesday from P205.66 million on Monday. — R.M.D. Ochave
