PH shares climb, take cue from Wall Street

Philippine shares rose further on Tuesday amid positive investor sentiment following the increase in US markets overnight and improved economic prospects.

The bellwether Philippine Stock Exchange index (PSEi) climbed by 38.41 points or 0.58% to close at 6,621.88 on Tuesday, while the broader all shares index rose by 13.74 points or 0.39% to end at 3,493.56.

“This Tuesday, the local market rose by 38.41 points to 6,621.88 as investors took positive cues from Wall Street overnight. This is amid the record runs of both the S&P 500 and the Dow Jones Industrial Average. The optimism kept the local bourse in the green territory for the whole session,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

“With today’s performance, the main index is back above the 6,600 level after a brief correction from the past few days,” he added.

The benchmark S&P 500 scaled a fresh record-high after closing at a record on Friday for the first time in two years, confirming it was in a bull market, Reuters reported.

The Dow Jones Industrial Average rose 138.01 points or 0.36% to 38,001.81; the S&P 500 gained 10.62 points or 0.22% to 4,850.43; and the Nasdaq composite gained 49.32 points or 0.32% to 15,360.29.

“The PSEi again corrected higher for the second straight day … after US stock markets again mostly posted new record highs… and the latest positive outlook of the local BPO (business process outsourcing) industry association,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The IT and Business Process Association of the Philippines (IBPAP) on Monday said that it hopes to exceed the two-million mark in BPO industry headcount by 2025.

IBPAP President Jack Madrid said the association’s members ended 2023 with 1.7 million direct jobs, up 8% year on year, and generated over USD 35 billion in revenue.

The industry is targeting 7-8% growth in headcount and USD 39 billion in revenue for this year.

All sectoral indices closed higher on Tuesday. Property surged by 31.04 points or 1.08% to 2,890.66; financials climbed by 19.32 points or 1.05% to 1,856.51; services increased by 7.31 points or 0.45% to 1,617.63; industrials went up by 24.26 points or 0.26% to 9,090.77; mining and oil rose by 15.86 points or 0.16% to 9,377.97; and holding firms improved by 6.1 points or 0.09% to 6,323.40.

“Among the index members, Monde Nissin Corp. was at the top, climbing 3.01% to PHP 8.55. Converge ICT Solutions, Inc. lost the most, dropping 1.81% to P8.68,” Mr. Plopenio said.

Value turnover climbed to PHP 4.76 billion on Tuesday with 775.59 million issues changing hands from the PHP 4.56 billion with 301.17 million shares traded on Monday. 

Advancers outnumbered decliners, 100 to 88, while 49 issues closed unchanged.

Net foreign selling stood at PHP 421.62 million on Tuesday versus the PHP 97.27 million in net buying logged the prior day. — RMDO with Reuters