PSEi rallies to 6,900 level on improved sentiment

Philippine stocks rallied to end at the 6,900 level on Thursday amid strong corporate results and following data showing better vehicle sales last month, which could mean that economic activity remains robust.

The bellwether Philippine Stock Exchange index (PSEi) rose by 0.08% or 5.79 points to end at 6,903.15 on Thursday, while the broader all shares index improved by 0.04% or 1.73 points to finish at 3,601.83.

Thursday’s close was the PSEi’s best finish in over a year or since it ended at 6,923.08 on Feb. 8, 2023.

“This Thursday, the local market inched up by 5.79 points (0.08%) to 6,903.15, driven by optimism on the corporate sector’s fourth quarter and full-year 2023 results as initial reports have been positive so far. The anticipation aided the bourse to close at 6,900 levels and join most of the regional peers in the green territory,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

“The increased vehicle sales in January also boosted the positive sentiment as this implied that spending remained strong,” he added.

A joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. and the Truck Manufacturers Association released on Wednesday showed that vehicle sales climbed by 15.5% to 34,060 units in January versus 29,499 units a year ago.

Commercial vehicle sales increased by 16.5% to 25,614, while passenger vehicle sales rose by 12.5% to 8,446 units.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said trading at the Philippine stock market was mostly mixed, similar to the trend in US markets overnight.

The S&P 500 and Dow Jones industrials eked out small gains on Wednesday, while the Nasdaq closed lower for a third straight session as investors awaited the release of Nvidia’s earnings that could determine near-term momentum for equities, Reuters reported.

The S&P 500 climbed 0.13% to end the session at 4,981.80 points. The Nasdaq declined 0.32% to 15,580.87 points, while the Dow Jones Industrial Average rose 0.13% to 38,612.24 points.

At home, sectoral indices were split. Holding firms climbed by 0.66% or 42.81 points to 6,468.26; property went up by 0.32% or 9.60 points to 2,961.92; and mining and oil increased by 0.14% or 12.61 points to 8,747.73.

On the other hand, financials fell by 0.45% or 9.11 points to 2,012.85; services declined by 0.3% or 5.23 points to 1,731.73; and industrials retreated by 0.12% or 11.49 points to 9,164.96.

Value turnover rose to PHP 4.92 billion on Thursday with 529.44 million issues changing hands from the PHP 4.88 billion with 1.63 billion shares traded the prior day.

Advancers outnumbered decliners, 98 against 88, while 49 names closed unchanged.

Net foreign buying dropped to PHP 114.63 million on Thursday from PHP 506.85 million on Wednesday. — R.M.D. Ochave with Reuters