PSEi climbs further after June remittance data

Philippines shares rose on Wednesday on continued bargain hunting and positive remittances data, with the market also waiting for the central bank’s monetary policy meeting on Thursday.

The Philippine Stock Exchange index (PSEi) rose by 74.18 points or 1.17% to close at 6,410.09 on Wednesday, while the broader all shares index went up by 25.54 points or 0.75% to end at 3,426.41.

“Bargain hunting continued in the local bourse as it gained by 74.18 points this session to 6,410.09. The sentiment received an added boost from the first half’s 2.9% growth in cash remittances, even though its slightly missed the… target of 3% growth for the year,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“Meanwhile, many investors remained on the sidelines… as investors awaited the meeting of the Bangko Sentral ng Pilipinas (BSP),” Ms. Alviar added.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said the market went up on the back of bargain hunting and the remittance growth seen in June.

Cash remittances coursed through banks rose by 2.1% to USD 2.81 billion in June from USD 2.75 billion in the same month in 2022, central bank data showed.

The June cash remittance inflows are at the highest level since USD 3.16 billion in December 2022.

However, the 2.1% annual growth in cash remittances was the slowest in 13 months or since the 1.8% rise seen in May 2022.

For the first six months of 2023, cash remittances rose by 2.9% to USD 15.79 billion from USD 15.35 billion in the comparable period last year.

The central bank expects remittances to grow by 3% this year.

Meanwhile, a BusinessWorld poll last week showed that 13 of 15 analysts see the BSP’s Monetary Board keeping its policy rate steady at a near 16-year high of 6.25% at its meeting on Thursday.

On the other hand, two economists expect the BSP to hike borrowing costs by 25 bps to match the move of the US Federal Reserve last month. This would bring the key rate to 6.5%.

Almost all sectoral indices went up on Tuesday, except for financials, which fell by 3.51 points or 0.18% to 1,900.92.

Meanwhile, mining and oil rose by 181.11 points or 1.85% to 9,966.52; holding firms climbed by 103.97 points or 1.74% to 6,074.37; industrials increased by 127.44 points or 1.43% to 8,989.21; property went up by 21.19 points or 0.8% to 2,655.59; and services gained 11.76 points or 0.76% to end at 1,559.95.

Value turnover declined to PHP 3.86 billion on Wednesday with 385.87 million shares changing hands from the PHP 24.82 billion with 472.74 million issues seen on Tuesday.

Advancers narrowly outnumbered decliners, 92 versus 89, while 45 names closed unchanged.

Net foreign buying inched down to PHP 100.99 million on Wednesday from PHP 107.17 million on Tuesday. — AHH