PSEi climbs on bargain hunting, positive data

PHILIPPINE shares climbed on Wednesday as investors went bargain hunting following improved remittances data and a surge in auto sales.

The benchmark Philippine Stock Exchange index (PSEi) gained 40.28 points or 0.59% to close at 6,835.41 on Wednesday, while the all shares index improved by 11.72 points or 0.27% to 4,227.48.

“Market went bargain hunting today after it was substantially down yesterday as infection rates sustained its downtrend, thus government may further ease restrictions going to July 15,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message on Wednesday.

“The PSEi closed higher as investors returned to the Philippines after US stocks pulled back after the June inflation data accelerated unexpectedly,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “Locally, sentiment got a boost from the improvement in remittances and auto sales data.”

Net foreign selling fell to P170.11 million on Wednesday from the P1.03 billion logged on Tuesday.

Cash remittances rose by 13% to $2.382 billion in May from $2.106 billion year on year, preliminary data from the Bangko Sentral ng Pilipinas showed. This was the fourth straight month of growth since January’s 1.7% contraction.

Meanwhile, vehicle sales surged by 44.8% in June compared with the same month last year. According to a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. and Truck Manufacturers Association, the figure is equivalent to 22,550 units versus last year’s 15,578 units.

On the other hand, the S&P 500 and Nasdaq ended lower on Tuesday after hitting record highs earlier in the session, with investors digesting a jump in consumer prices in June, Reuters reported. Data indicated US consumer prices rose by the most in 13 years last month, while so-called core consumer prices surged 4.5% year over year, the largest rise since November 1991.

The Dow Jones Industrial Average fell 0.31% to end at 34,888.79 points, while the S&P 500 lost 0.35% to 4,369.21. The Nasdaq Composite dropped 0.38% to 14,677.65.

Back home, most sectoral indices posted gains on Wednesday except for property, which lost 15.97 points or 0.49% to 3,234.87, and services, which shed 6.95 points or 0.43% to finish at 1,608.83.

Meanwhile, holding firms climbed by 76.99 points or 1.13% to 6,888.71; mining and oil rose by 87.92 points or 0.9% to 9,792.77; financials went up by 11.95 points or 0.81% to 1,476.31; and industrials gained 27.73 points or 0.28% to close at 9,608.12.

Value turnover declined to P4.37 billion with 1.02 billion shares switching hands on Wednesday, from the P5.78 billion with 1.89 billion shares seen the previous trading day.

Decliners beat advancers, 117 against 70, while 58 names remained unchanged.

“Market may remain on consolidation mode with a positive bias [on Thursday],” Diversified Securities’ Mr. Pangan said. — Keren Concepcion G. Valmonte with Reuters