PSE index climbs on positive data, foreign buying

Philippine stocks edged up on Wednesday, boosted by foreign buying and positive economic data that could affect the Bangko Sentral ng Pilipinas’ (BSP) policy decision this week.

The Philippine Stock Exchange index (PSEi) rose by 0.24% or 14.91 points to close at 6,098.74, while the broader all shares index increased by 0.31% or 11.43 points to end at 3,684.65.

“The PSEi continued to move upward as buying pressure supported the market’s momentum. Investors remained optimistic ahead of the Bangko Sentral ng Pilipinas’ upcoming interest rate decision, taking cues from the latest inflation data, which came in below the central bank’s target range,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Headline inflation picked up to 1.7% in September from 1.5% in August, the Philippine Statistics Authority reported on Tuesday. This was within the BSP’s 1.5-2.3% forecast and below the 1.9% median estimate in a BusinessWorld poll of 12 analysts.

For the first nine months, inflation averaged 1.7%, matching the BSP’s forecast for the year and still below its 2-4% annual target.

The Monetary Board will meet to review policy on Thursday (Oct. 9). Ten of the 16 analysts in a BusinessWorld poll expect the central bank to pause anew after it delivered three straight cuts, while the remaining six said a fourth consecutive 25-basis-point reduction could happen this week to help support domestic demand and boost the economy.

“The local market extended its climb as investors digested the Philippines’ August labor market data which posted good figures, with the number of employed increasing 8.8% month on month and 19% year on year,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“The peso’s strengthening against the US dollar also gave the market a boost. Foreign investors helped in the climb,” he added.

The peso closed at PHP 57.95 versus the greenback on Wednesday, jumping by 15 centavos from its PHP 58.10 finish on Tuesday, Bankers Association of the Philippines data showed.

Meanwhile, net foreign buying was at PHP 540.06 million on Wednesday, a reversal of the PHP 218.1 million in net selling recorded on Tuesday.

Most sectoral indices closed higher on Wednesday. Mining and oil surged by 4.91% or 671.77 points to 14,341.41; services jumped by 2.09% or 47.39 points to 2,309.50; industrials rose by 0.38% or 34.32 points to 9,003.39; and holding firms increased by 0.18% or 9.26 points to 4,917.98.

Meanwhile, financials declined by 1.09% or 22.77 points to 2,064.75, and property dropped by 0.57% or 13.19 points to 2,282.43.

Value turnover declined to PHP 6.38 billion on Wednesday with 4.54 billion shares traded from the PHP 10.35 billion with 2.37 billion shares that changed hands on Tuesday.

Advancers narrowly outnumbered decliners, 94 to 92, while 65 names closed unchanged. — A.G.C. Magno