Philippine stocks end higher on peace talks, strong data

Philippine shares climbed on Monday as easing Middle East tensions and optimism following strong manufacturing activity data boosted market sentiment.

The Philippine Stock Exchange index (PSEi) went up by 1.57% or 98.28 points to close at 6,334.72, while the broader all shares index rose 1.03% or 35.11 points to end at 3,430.16.

“The local market bounced back as global oil prices declined following US President Donald J. Trump’s announcement, saying that new strikes against Iran were held off and that negotiations with the country will resume. The announcement also strengthened the local currency, pushing it above the P61 per US dollar level,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

The peso surged by 31 centavos to close at PHP 60.93 versus the greenback on Monday from its PHP 61.24 finish on Friday. This was its best close in over six weeks or since June 19’s PHP 60.775.

Mr. Trump said talks with Iran will happen on Monday but declined to set a deadline for an agreement after earlier saying he had called off an imminent attack in hopes of quickly reaching a deal to reopen the Strait of Hormuz and resolve the impasse over Tehran’s nuclear capabilities, Reuters reported.

Oil prices were down more than 4% in early trading on Monday.

“The local bourse ended higher as investors welcomed the third straight month of expansion in the country’s manufacturing purchasing managers’ index (PMI) and expectations of steady July inflation. Investor sentiment was further supported by optimism ahead of key macroeconomic data releases. Strong earnings from select index heavyweights also boosted buying interest, lifting the broader market,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The S&P Global Philippines Manufacturing PMI rose to 51.8 in July from 50.9 in June.

Most sectoral indices closed higher on Monday. Services rose by 3.3% or 111.82 points to 3,492.43; mining and oil increased by 1.56% or 263.70 points to 17,127.70; financials went up by 1.26% or 24.08 points to 1,932.62; holding firms advanced by 0.75% or 33.81 points to 4,507.69; and industrials climbed by 0.47% or 37.82 points to 8,087.25.

Meanwhile, property declined by 0.84% or 16.35 points to 1,918.68.

Advancers outnumbered decliners, 109 to 79, while 53 names were unchanged.

“International Container Terminal Services, Inc. was the top index gainer, climbing 4.36% to PHP 1,005. Ayala Land, Inc. was the main index laggard, falling 5.33% to PHP 16,” Mr. Tantiangco said.

Value turnover went down to PHP 5.8 billion on Monday with 611.77 million shares traded from the PHP 10.9 billion with 1.26 billion shares that changed hands on Friday.

Net foreign buying was at PHP 75.66 million, a turnaround from the PHP 1.04 billion in net selling seen previously. — Alexandria Grace C. Magno