PHILIPPINE SHARES inched up on Monday to snap a five-day losing streak as investors bought bargains.
The Philippine Stock Exchange index (PSEi) rose by 0.34% or 20.45 points to 5,883.04, while the all shares index went up by 0.4% or 14.29 points to 3,534.61.
The PSEi flirted with the 6,000 level, opening higher at 5,986.65 versus its 5,862.59 close on Friday. It climbed to a peak of 5,994.04 intraday but returned to the 5,800 level by the end of the session.
“Monday’s action is deemed as a technical bounce with investors hunting for bargains following a five-day decline,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“The S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) for January, which posted an expansion at 52.3, also helped in Monday’s climb,” he added.
The January PMI was a five-month low and was down from 54.3 in December. A PMI reading above 50 means better operating conditions, while a reading below 50 shows deterioration.
“Philippine shares got off to a lukewarm start despite the selloff last Friday as investor sentiment soured after the announcement that new tariffs on major trading partners would be implemented, raising concerns about trade tensions and economic uncertainty,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Asian stock markets slumped on Monday and European and US equity futures pointed sharply lower after US President Donald J. Trump’s tariffs on Canada, Mexico and China triggered fears of a broad trade war and a hit to global growth, Reuters reported.
Mr. Trump slapped Canada and Mexico with duties of 25% and China with a 10% levy at the weekend, calling them necessary to combat the flow of migrants and fentanyl into the US.
Canada and Mexico immediately vowed retaliatory measures, and China said it would challenge Mr. Trump’s levies at the World Trade Organization.
The tariffs, outlined in three executive orders, are due to take effect at 12:01 a.m. ET (0501 GMT) on Tuesday.
Back home, the majority of sectoral indices rose on Monday. Property climbed by 1.79% or 39.49 points to 2,243.30; industrials rose by 0.67% or 54.86 points to 8,210.84; mining and oil went up by 0.41% or 28.55 points to 6,920.68; financials increased by 0.35% or 7.8 points to 2,180.80; and holding firms added 0.11% or 5.61 points to end at 4,915.42.
Meanwhile, services dropped by 0.95% or 18.5 points to 1,923.42.
Value turnover declined to P11.37 billion on Monday with 1.26 billion issues traded from the P21.61 billion with 1.76 billion shares exchanged on Friday.
Decliners outnumbered advancers, 131 versus 81, while 30 names were unchanged.
Net foreign buying went up to P695.09 million on Monday from P594.22 million on Friday. — Revin Mikhael D. Ochave with Reuters
