PHILIPPINE SHARES went up on Tuesday amid improved second-quarter results of listed firms and the continued expansion of manufacturing activity in the country.
The bellwether Philippine Stock Exchange index (PSEi) went up by 50.27 points or 0.79% to close at 6,362.30 on Tuesday, while the broader all shares index increased by 18.67 points or 0.55% to 3,411.59.
“Philippine shares surged near the session’s finish as investors scooped up some of the index’s heavyweights as corporate earnings improved and global oil prices began to fall,” Timson Securities, Inc. Head of Online Trading Marc Kebinson L. Lood said in a Viber Message.
“The local bourse gained by 50.27 points [or] 0.80% to 6,362.30 amid good earnings results so far, especially from the index members,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.
Ms. Alviar added that market sentiment also got a boost from the latest S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) report, which showed factory activity remained in expansion territory.
Philippine manufacturing activity slowed in July as production and new orders declined, signaling weaker global demand, S&P Global said on Monday.
The S&P Global Philippines Manufacturing PMI reading stood at 50.8 in July, lower than the 53.8 reading in June.
A PMI reading above 50 denotes improvement in operating conditions compared with the preceding month, while a reading below 50 signals deterioration.
The majority of sectoral indices closed in the green on Tuesday except for holding firms, which lost 1.61 points or 0.02% to finish at 6,013.80.
Meanwhile, mining and oil gained 309.78 points or 2.71% to close at 11,717.76; services jumped by 37.89 points or 2.31% to 1,678.22; property climbed by 28.25 points or 0.98% to 2,890.37; industrials went up by 72.40 points or 0.77% to 9,422.90; and financials increased by 5.69 points or 0.38% to 1,488.08.
Value turnover climbed to P5.87 billion on Tuesday with 528.35 million shares changing hands from the P5.13 billion with 396.95 million issues seen on Monday.
Decliners narrowly outnumbered advancers, 84 against 80, while 61 names closed unchanged.
Foreigners turned buyers, posting P36.44 million in net purchases on Tuesday from the P288.40 million in net selling seen the previous trading day.
Timson Securities’ Mr. Lood said investors are anticipating the release of the Philippines’ July inflation report on Friday, more corporate earnings and latest US jobs data which is also due on Friday. He put the PSEi’s support at 5,900 and resistance at 6,800.
Meanwhile, Philstocks Financial’s Ms. Alviar placed the PSEi’s support within 6,100-6,150 and resistance at 6,400.
“[The] sustainability of the rally is still questionable amid weak market participation and increasing geopolitical tensions between the US and China,” Ms. Alviar said. — J.I.D. Tabile