PSEi inches up on bargain hunting after break

The main index inched higher on Monday as investors picked up bargains and repositioned after the Lenten break.

The Philippine Stock Exchange index (PSEi) went up by 0.05% or 3.38 points to close at 6,138, while the broader all shares index declined by 0.31% or 11.68 points to 3,645.31.

“The local market edged higher this Monday as investors resumed their bargain hunting,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “Appreciation of corporate fundamentals and hopes that the local economy will weather the storm caused by the United States’ tariff policies helped the market in its climb.”

“Also aiding was the hopes of further monetary policy easing by the Bangko Sentral ng Pilipinas (BSP). Finally, the strengthening of the local currency against the US dollar also gave the market support,” Mr. Tantiangco added.

Finance Secretary Ralph G. Recto last week said that Philippine gross domestic product may have expanded by 6% in the first quarter. National Economic and Development Authority Secretary Arsenio M. Balisacan also said he is hopeful the economy grew by at least 6% in the quarter as rate cuts and cooling inflation likely drove domestic consumption.

The BSP on April 10 cut benchmark interest rates by 25 basis points (bps) to bring the policy rate to 5.5%, putting its easing cycle back on track after an unexpected pause in February.

The central bank has now slashed borrowing costs by a cumulative 100 bps since it kicked off its rate-cut cycle in August last year. BSP Governor Eli M. Remolona, Jr. has said that they are considering further reductions this year.

“Philippine shares started off tepidly as investors remain on the sidelines after the Holy Week break to gauge the price action movement of the market at the beginning of the week,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Majority of sectoral indices closed in the red on Monday. Property declined by 0.91% or 20.20 points to 2,193.08; industrials retreated by 0.59% or 52.19 points to 8,706.64; services went down by 0.57% or 11.13 points to 1,917.04; and holding firms dropped by 0.07% or 3.92 points to 5,063.35.

Meanwhile, mining and oil rose by 3.16% or 304.83 points to 9,944.92 and financials climbed by 1.44% or 34.55 points to 2,426.10.

“Bank of the Philippine Islands was the day’s index leader, climbing 2.35% to PHP 135.10. SM Prime Holdings, Inc. was the main index laggard, falling 3.1% to PHP 21.90,” Mr. Tantiangco said.

Value turnover rose to PHP 4.56 billion on Monday with 1.05 billion shares exchanged from the PHP 4.21 billion with 951.74 million issues traded on Wednesday.

Decliners outnumbered advancers, 109 versus 93, while 51 names were unchanged.

Net foreign selling increased to PHP 46.86 million on Monday from PHP 11.66 million on Wednesday. — Revin Mikhael D. Ochave