Stocks rise on positive data, gradual reopening

PHILIPPINE shares continued to post gains on Monday on the back of positive economic data and eased restrictions in Metro Manila.

The Philippine Stock Exchange index (PSEi) inched up by 6.35 points or 0.08% to close at 7,219.81 on Monday, while the broader all shares index shed 17.88 points or 0.40% to 4,430.93.

“Upbeat OFW (overseas Filipino workers) remittances and [the] reopening of [the] economy [is] keeping [the] PSEi resilient,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message.

Data released by the Bangko Sentral ng Pilipinas last week showed cash remittances went up for the seventh consecutive month in August, rising 5.1% year on year to $2.609 billion from $2.483 billion.

The government also eased restrictions in Metro Manila to Alert Level 3, allowing more businesses to resume operations.

“Philippine shares were off to a lukewarm start as investors will be given a snapshot of US industrial production tonight and the housing market highlight on Tuesday,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a separate Viber message on Monday.

“Earnings season is also now in full swing in the US before the Philippines follows in a couple of weeks, and a number of big names are set to report in the next few days,” he added.

US stocks ended higher on Friday after Goldman Sachs became the latest big bank to report strong quarterly earnings, and Wall Street’s three major indexes posted gains for the week, Reuters reported.

Goldman Sachs Group shares jumped, giving the Dow its biggest boost, as a record wave of dealmaking activity drove a surge in the bank’s quarterly profit.

Results from the big financial institutions last week provided a strong start to third-quarter US earnings, though investors will still watch in coming weeks for signs of impacts from supply chain disruptions and higher costs, especially for energy.

Mr. Limlingan said “anticipation is for solid corporate earnings against concerns about inflation and the economy’s recovery.

Sectoral indices were split on Monday. Property went up by 47.02 points or 1.41% to 3,377.20; financials gained 11.09 points or 0.70% to finish at 1,584.96; and mining and oil rose 20.24 points or 0.18% to 10,748.17.

Meanwhile, services lost 22.94 points or 1.2% to 1,880.06; holding firms declined by 32.75 points or 0.46% to 7,048.31; and industrials went down by 24.97 points or 0.23% to end at 10,587.65.

Value turnover increased to P11.25 billion with 1.1 billion shares switching hands on Monday from the P10.56 billion with 1.22 billion issues traded on Friday.

Decliners beat advancers, 131 versus 67, as 42 names remained unchanged.

Net foreign buying more than tripled to P847.51 million from the P274.53 million logged on the previous trading day. — K.C.G. Valmonte with Reuters