PHL shares inch up on last-minute foreign buying

PHILIPPINE shares inched up on Thursday as foreigners picked up shares at the last minute despite the government’s move to lower its growth target for the year. 

The Philippine Stock Exchange index (PSEi) went up by 38.33 points or 0.57% to close at 6,718.51 on Thursday, while the broader all shares index climbed 23.22 points or 0.56% to end at 4,141.63. 

“The local bourse gained 0.57% lifted by net foreign buying… bucking the performances of our regional peers,” Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a Viber message. 

Net foreign buying surged to P725.08 million on Thursday from the P90.51 million logged on Wednesday. 

“Investors booked gains earlier in the session as the Development Budget Coordination Committee (DBCC) downwardly revised its GDP (gross domestic product) growth target,” Ms. Alviar said. “Also, negative sentiment from the performance of Wall Street stocks overnight spilled over. Then at the last minute, foreigners helped the bourse to close in the green. However, market participation remained weak.” 

The DBCC on Wednesday downgraded the country’s economic growth target for this year to 4-5% from 6-7% previously due to the reimposition of strict lockdowns across the country as virus cases surge anew. 

“PSEi [is] doing catch up among the Asian equities as we continue to trade lower year-to-date versus gains in the majority of the Asian markets amid anticipation of better prospects for 2022,” Papa Securities Corp. Equities Strategist Manny P. Cruz said in a text message.  

“Local shares [are] rallying on three factors — faster vaccine rollout in NCR (National Capital Region), better earnings during the second quarter, and play on lower restrictions,” he added.  

As of Monday, 10,716,042 coronavirus disease 2019 (COVID-19) jabs have been administered so far in NCR. 

“For today and tomorrow, those monitoring Philippine shares are awaiting the announcement of Metro Manila’s new quarantine classification,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a separate Viber message on Thursday. 

Most sectoral indices posted gains on Thursday except for mining and oil, which declined by 170.45 points or 1.81% to 9,204.80, and financials, which lost 1.81 points or 0.12% to finish at 1,443.53. 

Meanwhile, holding firms gained 68.02 points or 1.02% to end at 6,719.17; industrials improved by 67.95 points or 0.7% to 9,709.03; property rose by 18.89 points or 0.6% to close at 3,159.95; and services inched up by 4.82 points or 0.29% to 1,644.06. 

Decliners beat advancers, 95 against 88, while 46 names remained unchanged. 

Value turnover declined to P5.28 billion with 1.30 billion issues traded on Thursday, from P6.18 billion with 1.14 billion shares that switched hands in the previous trading day. — Keren Concepcion G. Valmonte 

Leave a Reply

Your email address will not be published.