PHILIPPINE SHARES climbed on the first trading day of 2023 as investors remained bullish ahead of the release of key economic reports at home and in the United States.
The benchmark Philippine Stock Exchange index (PSEi) went up by 19.62 points or 0.29% to close at 6,586.01 on Tuesday, while the broader all shares index rose by 14.66 points or 0.42% to 3,476.70.
“Philippine shares started the year on a high note, brushing off the specters of 2022 to make way for the year ahead,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“Investors are getting a slew of economic data in the first trading week of the year. On Wednesday, JOLTS (US job openings and labor turnover survey) and the latest FOMC (Federal Open Market Committee) meeting minutes will be released. Meanwhile, December jobs report, the final employment report the Fed will have to consider before its next meeting on February, is due on Friday. Additionally, there are several speeches by Fed presidents scheduled Thursday and Friday,” Mr. Limlingan added.
At home, he said data on inflation and employment will be released this week, which could also affect the market’s movement in the coming days.
The Philippine Statistics Authority will release December inflation data on Jan. 5 and the November labor force survey results on Jan. 6.
“On the first trading day of the year, the local bourse ended in the green, as investors assessed the economic prospects of our country this year. So far, optimism remains for 2023,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.
She noted that many investors remained on the sidelines as despite the general bullishness in the market, concerns over tighter monetary policy in many countries continues to weigh on sentiment.
The Bangko Sentral ng Pilipinas has raised benchmark interest rates by 350 basis points (bps) since May in its fight against rising inflation.
Meanwhile, the US Federal Reserve has raised borrowing costs by 425 bps since March.
Most sectoral indices closed higher on Tuesday, except for property, which declined by 31.49 points or 1.07% to 2,897.22, and financials, which lost 1.63 points or 0.09% to end at 1,643.40.
Meanwhile, mining and oil added 418.53 points or 3.87% to close at 11,227.45; industrials climbed by 195.05 points or 2.08% to 9,546.21; services increased by 7.88 points or 0.48% to 1,642.11; and holding firms rose by 15.17 points or 0.23% to 6,448.44.
Value turnover declined to PHP 3.43 billion on Tuesday with 2.06 billion shares changing hands from the PHP 6.17 billion with 1.13 billion issues traded on Dec. 29.
Advancers outnumbered decliners, 94 versus 89, while 50 names closed unchanged.
Net foreign selling stood at PHP 326.42 million on Tuesday, a reversal of the PHP 207.5 million in net purchases seen on Dec. 29. — Justine Irish D. Tabile
This article originally appeared on bworldonline.com