PSEi returns to 6,500 level on bargain hunting

PHILIPPINE SHARES rose on Monday on bargain hunting following their decline last week.

The Philippine Stock Exchange index (PSEi) increased by 129.54 points or 2.02% to 6,523.09 on Monday, while the broader all shares index went up by 55.71 points or 1.63% to close at 3,470.46.

“The local bourse jumped by 129.54 points to 6,523.09 due to bargain hunting after five consecutive days of market decline. Moreover, the optimistic business outlook for the second and third quarter boosted the market sentiment,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said.

Consumer sentiment remained pessimistic in the second quarter due to elevated prices and lower salaries, while businesses were more optimistic because of the expected increase in sales driven by stronger demand for goods and services, the Bangko Sentral ng Pilipinas (BSP) said on Friday.

The consumer sentiment for the second quarter remained pessimistic as the overall confidence index (CI) was steady at -10.5% from -10.4% in the prior quarter, the BSP’s Consumer Expectations Survey for the period showed.

Meanwhile, business confidence in the economy improved for the second quarter as the overall CI rose to 40.8% from 34% in the first quarter, the BSP’s Business Expectations Survey showed.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message that the PSEi rose on bargain hunting “as investors bought… many undervalued names.”

“Analysts back home will monitor the release of the May budget balance on June 27 and PPI (producer price index) on Friday. There will be no trading on Wednesday in observance of Eid’l Adha,” Mr. Limlingan said.

In April, the National Government’s budget surplus ballooned to P66.8 billion in April from P4.9 billion a year prior, as revenue growth outpaced expenditures, data from the Bureau of the Treasury showed.

Meanwhile, price growth in manufactured products slowed to 2.3% in April, data from the Philippine Statistics Authority showed.

The PPI for manufacturing declined from the 2.5% posted in March. The year-earlier growth rate had been 6.3%.

All sectoral indices increased on Monday. Industrials surged by 221.07 points or 2.47% to 9,168.88; holding firms went up by 150.85 points or 2.39% to 6,442.61; property climbed by 50.08 points or 1.91% to 2,662.53; services jumped by 20.59 points or 1.33% to 1,568.60; mining and oil rose by 123.02 points or 1.24% to 9,998.85; and financials added 17.39 points or 0.95% to close at 1,846.94.

Value turnover went up to P4.32 billion on Monday with 513.77 million shares changing hands from the P3.32 billion with 537.03 million issues traded on Friday.

Advancers outnumbered decliners, 100 versus 70, while 56 names closed unchanged.

Net foreign buying stood at P708.27 million on Monday from the P268.51 million in net selling recorded on Friday. — AHH