Philippine shares rebound on last-minute buying

Philippine shares rose anew on Tuesday on last-minute buying before the recomposition of the main index and the release of September inflation data.

The Philippine Stock Exchange index (PSEi) went up by 1.46 points or 0.02% to end at 6,305.99 on Tuesday, while the broader all shares index rose by 6.50 points or 0.19% to 3,405.62.

“The PSEi inched up on market-on-close buying after trading in the red for the most part of the day’s session. The move was helped by a surge in trades of UBP and NIKL as institutional funds prepared for the changes to the PSE benchmark index that will take effect on Wednesday,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

Effective on Wednesday, Nickel Asia Corp. (NIKL) will become part of the composite index, replacing Union Bank of the Philippines, Inc. (UBP).

“The market being bought up at the close was likely due to bargain hunting, with the index trying to establish a stronger base at around the 6,300 levels before pushing higher,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message.

Market sentiment remained weak amid expectations of faster inflation last month, he said.

“There is still an air of uncertainty ahead of the release of September inflation. The results will determine the central bank’s policy decisions come November. Better-than-expected figures are likely to improve investor sentiment,” Mr. Arce added.

September consumer price index (CPI) data will be released on Oct. 5, Thursday.

A BusinessWorld poll of 17 analysts yielded a median estimate of 5.4% for September inflation, near the low end of the 5.3-6.1% forecast of the Bangko Sentral ng Pilipinas (BSP) for the month.

If realized, the September CPI would be faster than the 5.3% print in August but would be lower than the 6.9% in the same month in 2022.

The reading would also mark the 18^th straight month of inflation exceeding the BSP’s 2-4% annual target.

The central bank will hold its next policy meeting on Nov. 16. BSP Governor Eli M. Remolona, Jr. has said they are open to an off-cycle rate increase before that review.

Sectoral indices were split on Tuesday. Mining and oil climbed by 343.28 points or 3.19% to 11,088.66; industrials went up by 81.03 points or 0.9% to 9,024.47; and services rose by 7.55 points or 0.5% to 1,517.45.

Meanwhile, holding firms fell by 28.41 points or 0.47% to 5,995.30; financials dropped by 7.71 points or 0.41% to 1,844.67; and property declined by 2.02 points or 0.07% to 2,597.98.

Value turnover went up to PHP 5.94 billion on Tuesday with 858.83 million shares changing hands from the PHP 3.86 billion with 591.37 million shares seen on Monday.

Decliners outnumbered decliners, 103 versus 94, while 50 shares closed unchanged.

Net foreign selling rose to PHP 881.06 million on Tuesday from PHP 402 million seen on Monday. — SJT