PSEi climbs after improved manufacturing data

Philippine stocks climbed on Monday following data showing improved manufacturing activity and as the market awaited the release of the February consumer price index (CPI) report.

The benchmark Philippine Stock Exchange index (PSEi) rose by 0.46% or 32.08 points to end at 6,951.67 on Monday, while the broader all shares index climbed by 0.27% or 9.74 points to finish at 3,618.95.

“The positive cues from the US markets, along with the robust S&P Global Philippines manufacturing purchasing managers’ index (PMI) last February, boosted sentiment, causing the PSEi to briefly breach the 7,000 level in the earlier session,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“However, it failed to sustain that rally as some investors took a cautious stance while waiting for the inflation data to be released [on Tuesday],” she added.

“Philippine shares continued to rise as investors made bets ahead of the country’s February CPI, which comes out [on Tuesday], and as investors gear for the start of another trading month,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.

The S&P Global Philippines Manufacturing PMI rose to 51 in February from 50.9 in January, S&P Global said on Friday. A PMI reading above the 50 mark denotes improvement in operating conditions compared to the preceding month, while a reading below 50 signals deterioration.

Meanwhile, a BusinessWorld poll of 16 analysts conducted last week yielded a median estimate of 3% for the February CPI, within the 2.8-3.6% forecast of the Bangko Sentral ng Pilipinas (BSP) for the month.

If realized, February inflation would be slightly faster than the 2.8% print in January but slower than 8.6% in the same month a year ago. It would also mark the first time that the CPI picked up on a month-on-month basis since September 2023.

Still, February would be the third straight month that headline inflation was within the BSP’s 2-4% target.

Sectoral indices were split on Monday. Services climbed by 2.46% or 43 points to 1,787.94; property increased by 1.3% or 37.50 points to 2,914.94; and mining and oil went up by 0.93% or 78.97 points to 8,546.96.

On the other hand, financials fell by 0.46% or 9.45 points to 2,022.16; industrials went down by 0.24% or 22.85 points to 9,333.67; and holding firms dropped by 0.13% or 8.66 points to 6,505.52.

“Among the index members, International Container Terminal Services, Inc. was at the top while Universal Robina Corp. was at the bottom, losing by 2.71%,” Ms. Alviar said.

Value turnover inched up to PHP 5.64 billion on Monday with 530.17 million issues changing hands from the PHP 5.63 billion with 910.48 million shares traded on Friday.

Decliners beat advancers, 94 versus 88, while 54 names ended unchanged.

Net foreign buying climbed to PHP 799.61 million on Monday from PHP 677.17 million on Friday. — R.M.D. Ochave