PHILIPPINE shares posted gains on Tuesday due to better-than-expected inflationary pressures in September and improving coronavirus disease 2019 (COVID-19) numbers.
The 30-strong Philippine Stock Exchange Index (PSEi) gained 20.35 points, or 0.29%, to close at 6,981.24 on Tuesday, while the broader all-shares index rose 9.98 points or 0.23% and ended at 4,358.17.
“Filipino stocks were bought at the close when September inflation was much better than most expected,” Luis A. Limlingan, director of sales at Regina Capital Development Corp., said in a Viber message.
Headline inflation stood at 4.8% in September, slowing from 4.9% in August but faster than the 2.3% in the same month last year, the Philippine Bureau of Statistics reported Tuesday.
The latest value is below the 5% median in a Business world Poll conducted late last week and is on the lower end of Bangko Sentral ng Pilipina’s (GNP) estimate of 4.8% -5.6% for the month.
Inflation averaged 4.5%, still above the 2-4% GDP target and the 4.4% forecast for this year.
“The market continued its upward trend today as the pandemic virus transmission rate continues its downward trend forecast which will eventually wear off [restrictions] enter the fourth quarter, ”Aniceto K. Pangan, a stock trader at Diversified Securities, Inc., said in a text message Tuesday.
On Monday, the country recorded 10,748 new COVID-19 infections. Active cases stood at 106,160.
Philstocks Financial, Inc. Senior Research and Engagement Supervisor Japhet Louis O. Tantiangco said improving the country’s COVID-19 situation helped boost market sentiment.
“However, at the start of the trading day the market was in negative territory as profit-taking was caused by the negative spillovers from Wall Street,” Tantiangco said in a separate Viber message.
“The trade for the day was lukewarm with [the] Net sales … below the annual average of 7.15 billion pesos, “said Tantiangco.
Turnover rose to 6.57 billion pesos after 1.08 billion shares changed hands on Tuesday, up from 5.89 billion pesos with 955.46 million issues traded the previous day.
Most sector indices rose Tuesday, with the exception of financials, which fell 6.64 points, or 0.46%, to 1,413.24 points and real estate, which fell 2.87 points, or 0.09%, to 3,002.62.
Meanwhile, services rose 19.62 points, or 1%, to 1,971.31 points; Industrials climbed 61.27 points, or 0.59%, to 10,329.89; Holding companies rose 30.10 points, or 0.43%, to 7,017.33; Mining and Oil rose 36.28 points, or 0.37%, to close at 9,627.41.
Rejecters beat newcomers, 106 against 84, while 58 names closed unchanged.
The net foreign sales rose to 709.34 million P. on Tuesday, more than double the 336.54 million P. recorded the previous day – Keren Concepcion G. Valmonte