Index rises to 6,600 level amid gains on Wall Street

PHILIPPINE SHARES continued to climb on Thursday, getting a boost from gains on Wall Street overnight and improved prospects for the economy.

The Philippine Stock Exchange index (PSEi) rose by 71.59 points or 1.09% to 6,613.50 on Thursday, while the broader all shares index went up by 25 points or 0.71% to 3,515.91.

“The local market climbed this Thursday by 71.59 points (1.09%) to 6,613.50 as investors took cues from Wall Street’s positive performance overnight amid optimism towards second-quarter corporate results in the US. At home, the strong second-quarter earnings report from BPI (Bank of the Philippine Islands) also sparked hopes towards the Philippine corporate sector’s earnings season,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

“Moreover, ADB’s (Asian Development Bank) projection that the Philippines will be the fastest growing economy for 2023 and 2024 in Southeast Asia boosted sentiment,” Mr. Plopenio added.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message that the PSEi rose as stronger-than-expected earnings created “optimism for a soft landing for the economy.”

The Dow Jones Industrial Average and S&P 500 index rose modestly on Wednesday, with the blue-chip Dow registering its eighth straight day of gains as investors gauged the latest round of corporate earnings, but a decline in Microsoft held the Nasdaq near the unchanged mark, Reuters reported.

The Dow Jones Industrial Average rose 109.28 points or 0.31% to 35,061.21; the S&P 500 gained 10.74 points or 0.24% to 4,565.72; and the Nasdaq Composite added 4.38 points or 0.3% to 14,358.02.

Meanwhile, BPI saw its net income rise by 4.5% year on year to PHP 13 billion in the second quarter amid an increase in revenues, it said on Thursday.

The bank’s shares rose by PHP 1.10 or 0.97% to close at PHP 114.50 apiece on Thursday.

On the other hand, the ADB said in its Asian Development Outlook released on Wednesday that it kept the 6% gross domestic product (GDP) growth projection for the Philippines for 2023, and 6.2% for 2024.

All sectoral indices went up on Thursday except for services, which fell by 4.25 points or 0.26% to 1,581.80.

Meanwhile, financials jumped by 35.86 points or 1.89% to 1,927.90; property climbed by 34.16 points or 1.28% to 2,687.90; holding firms went up by 68.39 points or 1.07% to 6,437.84; industrials increased by 40.76 points or 0.43% to 9,317.58; and mining and oil rose by 49.09 points or 0.49% to 10,011.44.

Value turnover climbed to PHP 4.52 billion on Thursday with 518.55 million shares changing hands from the PHP 3.66 billion with 489.05 million issues seen on Wednesday.

Advancers outnumbered decliners, 99 versus 81, while 44 names closed unchanged.

Net foreign buying rose to PHP 419.79 million on Thursday from the PHP 43.99 million seen on Wednesday. — AHH with Reuters