STOCKS rebounded on Thursday on bargain-hunting following their decline the day prior and amid expectations of slower July inflation.
The Philippine Stock Exchange index (PSEi) increased by 93.48 points or 1.44% to close at 6,576.76 on Thursday while the broader all shares index went up by 35.63 points or 1.02% to 3,499.49.
“The local market bounced back this Thursday by 93.48 points to 6,576.76 as investors saw bargain-hunting opportunities after Wednesday’s decline. The anticipation of cooler inflation at home, which is set to be released this Friday, also boosted sentiment,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.
“The market brushed aside worries about the US credit downgrade and rallied on the back of strong corporate earnings from key names and expectations that the Philippine July CPI (consumer price index) print will show sustained inflation deceleration. Investors took advantage of the recent selloff to pick up index names that have reported or are poised to report healthy first half results,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.
The Philippine Statistics Authority will release July CPI data on Friday, Aug. 4.
In a BusinessWorld poll conducted last week, 17 analysts yielded a median estimate of 4.9%. If realized, this would be slower than the 5.4% seen in June and would match the 4.9% in April 2022.
The July print would also exceed the Bangko Sentral ng Pilipinas’ 2-4% target for the year for the 16th straight month.
Mr. Plopenio added that among index members, Ayala-led ACEN Corp. saw a 5.79% increase to P5.30 apiece on Thursday as the company reported higher earnings.
The company’s attributable net income for the second quarter rose by 24.2% to P2.21 billion from 1.78 billion, on the back of its expansion into renewable energy.
In the first half, its bottom line surged by 94% to P5.07 billion from P2.95 billion the same period last year.
Sectoral indices rose on Thursday except for mining and oil, which fell by 62.01 points or 0.6% to 10,210.37.
Meanwhile, property jumped 63.57 points or 2.38% to 2,734.52; industrials increased by 151.15 points or 1.66% to 9,221.45; financials went up by 23.24 points or 1.21% to 1,934.11; holding firms climbed by 60.91 points or 0.97% to 6,312.30; and services by 10.12 points or 0.65% to end at 1,563.96.
Value turnover dropped to P3.95 billion on Thursday with 1.2 million shares changing hands from the P4.23 billion with 787.44 million issues seen on Wednesday.
Advancers outnumbered decliners, 99 versus 81, while 50 names closed unchanged.
Net foreign selling went up to P752.52 million on Thursday from P553.02 million on Wednesday. — A.H. Halili