Bargain-hunting, earnings push PSEi past 5,900
PHILIPPINE STOCKS advanced on Monday, returning above the 5,900 mark as investors took advantage of cheaper prices and reacted to positive corporate results while staying cautious before the release of key economic data.
The Philippine Stock Exchange index (PSEi) rose by 1.86% or 108.52 points to close at 5,942.16, while the broader all shares index went up by 0.88% or 29.41 points to end at 3,349.61.
“The PSEi started the week higher after heavy selling pressure last Thursday as bargain-hunting emerged across select index names. Market sentiment improved as more companies released their first-quarter earnings, providing fresh cues for investors amid cautious trading conditions,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“The Philippine Stock Exchange index closed higher on Monday, mainly due to bargain-hunting. This is despite the slowdown in PMI (purchasing managers’ index) in April, which dampened broader economic sentiment,” Unicapital Securities, Inc. Research Head Wendy B. Estacio-Cruz said in a Viber message.
In April, Philippine factory activity contracted for the first time since November due to a sharp drop in new orders.
The S&P Global Philippines Manufacturing PMI went down to 48.3 last month versus the 51.3 in March. A PMI reading below 50 shows a deterioration in operating conditions from the previous month, while a reading above 50 signals an improvement.
“The market is now turning its attention to key domestic data catalysts, particularly the April inflation data scheduled for release tomorrow, which could provide clearer direction for monetary policy expectations,” Ms. Estacio-Cruz added.
A BusinessWorld poll of 17 analysts yielded a median estimate of 5.5% for the April consumer price index, accelerating from the 4.1% in March and 1.4% a year ago. This is a tad below the Bangko Sentral ng Pilipinas’ 5.6%-6.4% forecast for the month.
If realized, the headline print would be the fastest since the 6.1% seen in September 2023.
Majority of sectoral indices closed higher on Monday. Services surged by 4.35% or 120.09 points to 2,875.03; industrials increased by 1.04% or 91.11 points to 8,847.53; holding firms went up by 0.9% or 40.62 points to 4,515.27; financials climbed by 0.43% or 7.88 points to 1,807.61; and property rose by 0.4% or 7.70 points to 1,921.16. Meanwhile, mining and oil dropped by 0.1% or 18.86 points to 17,443.50.
Advancers outnumbered decliners, 102 to 91, while 66 names were unchanged.
Value turnover dropped to P6.52 billion on Monday with 1.81 billion shares traded from the P7.65 billion with 943.12 million issues that changed hands on Thursday.
Net foreign buying was at P341.56 million, a turnaround from the P538 million in net selling recorded in the previous session. — Alexandria Grace C. Magno
