Stocks stay above 6,400 on earnings optimism

Philippine shares rose further on Monday on optimism over companies’ second-quarter results and continued bargain hunting lifted the market despite lingering concerns over fresh geopolitical risks that have pushed up global oil prices anew.

The Philippine Stock Exchange index (PSEi) climbed by 0.18% or 11.61 points to close at 6,415.72, while the broader all shares index rose by 0.19% or 6.62 points to end the session at 3,450.69

This marked a fourth straight day of gains and a fresh over four-month high for the PSEi, as this was its best finish since March 3’s 6,445.38.

The PSEi opened Monday’s session at 6,435.12, up from Friday’s close of 6,404.11. It reached a high of 6,478.71 and a low of 6,415.72.

“The local bourse ended higher, sustaining its position above the 6,400 level as optimism ahead of the second-quarter corporate earnings season supported investor sentiment. Gains came despite headwinds from rising oil prices and lingering geopolitical tensions, which prompted some profit taking and tempered the market’s advance,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “Nevertheless, investors remained selectively optimistic, keeping the benchmark index in positive territory.”

“Bargain hunting with hopes of satisfactory second-quarter/first-half corporate results… helped in the rise. Gains were trimmed in the latter half of the day, however, amid concerns over the US-Iran war and its upward effect on oil prices,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco likewise said in a Viber message.

He added that sustained buying of index heavyweight International Container Terminal Services, Inc. (ICTSI) supported the market’s rally.

“International Container Terminal Services, Inc. was the day’s index leader, climbing 2.91% to PHP 1,027. SM Prime Holdings, Inc. was the main index laggard, falling 4.4% to PHP 18.24,” he said.

Four of six sectoral indices closed in the red. Property sank by 1.46% or 28.64 points to 1,927.17; holding firms dropped by 0.82% or 37.01 points to 4,452.37; industrials fell by 0.57% or 48.02 points to 8,332.28; and financials went down by 0.38% or 7.51 points to 1,934.17.

Meanwhile, mining and oil advanced by 3.85% or 563.74 points to 15,175.97, and services climbed by 2.22% or 77.76 points to 3,570.6.

Advancers beat decliners, 98 to 92, while 77 names were unchanged.

Value turnover increased to PHP 6.75 billion on Monday with 538.96 million shares traded from the PHP 6.18 billion with 902.96 million issues that changed hands on Friday.

Net foreign buying decreased to PHP 640.40 million from PHP 857.49 million in the previous session. — Alexandria Grace C. Magno