PHILIPPINE STOCKS went up on Monday on improved market sentiment following positive data and tracking Wall Street’s rise on Friday.
The benchmark Philippine Stock Exchange index (PSEi) gained 67.99 points or 1.08% to close at 6,354.76 on Monday, while the broader all shares index went up by 23.70 points or 0.71% to 3,352.59.
“The PSEi sustained its upward momentum as sentiment continued to improve following the positive news last week (faster gross domestic product growth, cooler-than-expected US inflation and China’s easing of COVID restrictions), outweighing some of the uncertainties in the upcoming BSP (Bangko Sentral ng Pilipinas) meeting,” AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message.
“Philippine shares picked up from last week, continuing their ascent, after stellar corporate earnings and growth data encouraged investors to buy into the market,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said.
Philippine gross domestic product (GDP) expanded by 7.6% in the third quarter, slightly faster than the revised 7.5% growth in the preceding three-month period and 7% a year earlier. In the nine months to September, GDP growth averaged 7.7%.
The strong growth print cemented expectations of an aggressive rate increase from the BSP at its Thursday meeting.
Meanwhile, US consumer inflation increased by 7.7% annually in October, slower than the 8.2% logged in September, raising hopes of smaller rate hikes by the US Federal Reserve starting next month.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the PSEi tracked the rise of US shares last week.
On Friday, the Dow Jones Industrial Average went up by 0.1%; the S&P 500 gained 0.92%; and the Nasdaq Composite went up by 1.88%.
The majority of sectoral indices rose on Monday. Holding firms went up 83.98 points or 1.41% to 6,036.56; industrials rose by 113.57 points or 1.24% to 9,228.54; property gained 33.51 points or 1.2% to end at 2,816.24; financials added 9.45 points or 0.58% to close at 1,623.80; and services climbed by 4.50 points or 0.28% to 1,612.30.
Meanwhile, mining and oil declined by 44.59 points or 0.46% to 9,613.96.
Value turnover went up to P5.65 billion on Monday with 634.86 million shares changing hands from P4.92 billion with 441.04 million issues traded on Friday.
Advancers outnumbered decliners on Monday, 103 versus 85, while 39 names closed unchanged.
Net foreign buying went up to P681.67 million on Monday from P432.73 million on Friday.
AP Securities’ Mr. Temporal placed PSEi’s immediate support at 6,200 and immediate resistance at 6,500. — A.E.O. Jose