PHILIPPINE STOCKS extended their climb on Monday as investors bought bargain stocks and on expectations of slower headline inflation in July.
The bellwether Philippine Stock Exchange index (PSEi) increased by 0.67% or 42.52 points to close at 6,348.65, while the broader all shares index climbed by 0.39% or 14.93 points to 3,766.60.
“The local market’s sideways movement ended in the positive territory as investors continued with their bargain hunting,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
“Expectations that inflation last July remained well under control also helped in lifting the market,” he added.
The Philippine Statistics Authority (PSA) is scheduled to release July inflation data on Tuesday (Aug. 5). A BusinessWorld poll of 17 analysts yielded a median estimate of 1.2% for the July consumer price index (CPI), within the central bank’s 0.5%-to-1.3% projection.
If met, the July CPI print would be slower than the 1.4% in June and the 4.4% clip in the same month a year ago.
This would also be the slowest in nearly six years or since the 0.6% print posted in October 2019.
“The PSEi closed at 6,348.65, up by 0.67%, as investors are likely looking for bargains after a week of strong selling pressure,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.
“Moreover, investors are still awaiting gross domestic product (GDP) and inflation data, which could prompt them to take a firmer position,” he added.
The PSA will release second-quarter GDP data on Aug. 7 (Thursday). GDP likely grew by 5.5% in the period, a separate BusinessWorld poll of 18 analysts showed. This would be faster than 5.4% in the first quarter but slower than the 6.5% expansion in the second quarter last year.
The government targets 5.5%-6.5% GDP growth for the year.
Sectoral indices were mixed on Monday. Property went up by 2.79% or 66.08 points to 2,426.74; mining and oil rose by 2.3% or 202.46 points to 8,975.11; and financials increased by 1.49% or 32.75 points to 2,224.99.
Meanwhile, holding firms declined by 0.56% or 30.07 points to 5,342.31; industrials fell by 0.36% or 33.41 points to 9,069.79; and services retreated by 0.06% or 1.47 points to 2,212.39.
“Ayala Land, Inc. was the day’s index leader, jumping 5.56% to P26.60. Bloomberry Resorts Corp. was at the bottom, falling 2.68% to P3.99,” Mr. Tantiangco said.
Value turnover slightly dropped to P5.2 billion on Monday with 797.02 million shares traded from the P5.59 billion with 1.28 billion shares exchanged on Friday.
Advancers bested decliners, 100 versus 91, while 61 names were unchanged.
Net foreign selling increased to P257.77 million on Monday from P54.3 million on Friday. — Revin Mikhael D. Ochave