PSEi closes above 7,700 ahead of Fed, US data
LOCAL SHARES started the month in the green yesterday ahead of key data to be released this week and the US Federal Reserve’s policy review, and amid positive feedback from the country’s hosting of the 30th Association of Southeast Asian Nations (ASEAN) Summit.
The all-shares index also rose 25.37 points or 0.55% to 4,604.57.
“Philippine markets started the month of May on a high note as investors are gearing up for key economic events this week,” Luis A. Limlingan, business development head at Regina Capital Development Corp., said yesterday.
Mr. Limlingan said key US data will be released this week, including the employment report due out on Friday.
“The May FOMC (Federal Open Market Committee) statement will be released on Wednesday. In addition, there are several scheduled speaking engagements by Fed officials this week,” he added. On the local front, April inflation data will be released this Friday.
Justino B. Calaycay, Jr., senior research analyst at Philstocks Financial, Inc., for his part, said “optimism is greatly helped by the absence of bad news and the sustained positive outlook for the domestic economy.”
“It is really looking good for the market as it forays back into the 7,700 line, keeps year-to-date gains above 10% and manages to keep the bears at bay. As more earnings numbers are reported, the market will have enough to hinge optimism on,” he said in a market report yesterday. “The successful staging of the ASEAN Summit, punctuated by US President Donald [J.] Trump’s call on President [Rodrigo R.] Duterte who currently holds for the Philippines the rotating chairmanship, lent some stability and hints at a possible thawing of US-PH relationship which lately has sailed over rocky seas -- or maybe not.”
All sectoral counters ended in positive territory on Tuesday save for services which dropped 8.42 points or 0.52% to 1,606.88.
Leading the gainers was the mining and oil counter, which rose 363.08 points or 3% to 12,433.80. Industrials also added 92.59 points or 0.81% to 11,400.18; property went up 47.57 points or 1.43% to 3,373.82; financials climbed 10.26 points or 0.54% to 1,897.36; and holding firms rose 24.81 points or 0.31% to 7,838.81.
Foreign funds bought more shares than they sold on Tuesday, resulting in net purchases worth P333.12 million, a reversal of Thursday’s net sales of P145.97 million.
Advancers beat decliners yesterday 119 to 84, while 39 issues were unchanged.
Value turnover reached P7.25 billion as 3.11 million shares changed hands, rising from the previous session’s P5.76 billion.
“We can expect the PSEi to further test succeeding resistance lines -- 7,750 to 7,770 -- as it moves to bring the benchmark to positive territory under the Duterte leadership,” Mr. Calaycay said. -- I.C.C. Delavin