PHILIPPINE STOCKS rose on Monday on last-minute bargain hunting and expectations that headline inflation eased in March.
The main Philippine Stock Exchange index (PSEi) rose by 0.54% or 33.28 points to close at 6,180.72, while the broader all shares index increased by 0.29% or 10.93 points to end at 3,677.88.
Philippine financial markets are closed on April 1 (Tuesday) in observance of Eid’l Fitr or the end of Ramadan.
“Late-day bargain hunting sent the local market higher this Monday,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “The positive finish is attributed to expectations that the Philippines’ inflation this March has remained tempered, allowing the Bangko Sentral ng Pilipinas to further ease the country’s monetary policy at their April meeting.”
“Philippine shares were trading in the red for most of the session before the market was bought up at closing to end the quarter. When the market resumes trading locally on Wednesday, investors will gear up for macroeconomic events ahead,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
The Philippine Statistics Authority will release March consumer price index (CPI) data on April 4 (Friday).
A BusinessWorld poll of 18 analysts yielded a median estimate of 2% for the March CPI. If realized, this would be a tad slower than the 2.1% in February and the 3.7% clip in the same month a year ago. This would also be the lowest monthly inflation in six months or since the 1.9% print in September.
“The PSEi closed higher for the second straight day amid some window-dressing activities… and also after the local campaign period already started on Friday, that could benefit some listed companies in terms of higher sales and earnings in view of midterm elections-related spending,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort added in a Viber message.
Most sectoral indices rose on Monday. Property increased by 3.02% or 66.13 points to 2,252.07; holding firms went up by 1.83% or 92.22 points to 5,108.47; industrials climbed by 1.59% or 137.76 points to 8,757.85; and mining and oil climbed by 1.12% or 105.12 points to 9,472.85.
Meanwhile, Services declined by 2.16% or 43.72 points to 1,980.73 and financials went down by 0.74% or 17.86 points to 2,374.49.
“SM Prime Holdings, Inc. was Monday’s top index gainer, jumping 5.26% to P24. Bloomberry Resorts Corp. was at the tail end, falling 5.19% to P2.92,” Mr. Tantiangco said.
Value turnover jumped to P5.35 billion on Monday with 1.15 billion shares traded from the P3.41 billion with 1.54 billion issues exchanged on Friday.
Advancers bested decliners, 104 versus 99, while 46 issues were unchanged.
Net foreign buying went up to P249.68 million on Monday from P70.34 million on Friday. — Revin Mikhael D. Ochave
