PSEi up on last-minute buying ahead of GDP data
SHARES inched up on Monday on last-minute buying amid positive labor data and ahead of the release of the second quarter Philippine gross domestic product (GDP) report.
The bellwether Philippine Stock Exchange index (PSEi) rose by 28.74 points or 0.44% to close at 6,434.24 on Monday, while the broader all shares index increased by 16.67 points or 0.48% to 3,448.73.
“The local bourse gained by 28.74 points or +0.45% to 6,434.24 at the last minute, following the good unemployment rate this June, ahead of the release of the Philippine second-quarter GDP,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.
“Moreover, a good employment rate and strong second-quarter earnings of the companies provide optimism, especially with the Q2 GDP that is about to be released [on Tuesday],” Mr. Alviar said.
“Philippine shares traded higher as the local market awaits the release of the country’s second quarter of 2022 GDP figures on Tuesday, August 9,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
AB Capital Securities, Inc. Vice-President and Head of Research Jovis Vistan said in a Viber message said the PSEi moved sideways for most of the trading session.
“Last-minute buying pulled the index and it was led by Ayala Corp., JG Summit Holdings, Inc., PLDT, Inc. and Metropolitan Bank & Trust Co.,” Mr. Vistan added.
The preliminary results of the Philippine Statistics Authority’s (PSA) Labor Force Survey showed an unemployment rate of 6% in June, steady for the second straight month and lower than the 7.7% posted in June last year.
The PSA will release the second-quarter GDP report on Tuesday.
The majority of the sectoral indices ended in the green on Monday except for mining and oil, which went down by 201.68 points or 1.76% to close at 11,237.42, and property, which declined by 21.06 points or 0.73% to 2,836.98.
Meanwhile, financials jumped by 16.89 points or 1.11% to 1,537.51; industrials went up by 91.33 or 0.95% to 9,685.04; services climbed by 14.64 points or 0.87% to 1,688.35; and holding firms rose by 33.66 points or 0.55% to 6,105.86.
Advancers outnumbered decliners, 113 versus 55, while 55 names remained unchanged.
Value turnover went down to P7.91 billion on Monday with 591.40 million shares changing hands from P12.71 billion with 712.87 million issues seen the previous trading day.
Net foreign buying increased to P518.79 million on Monday from the P42.44 million seen the previous trading day.
“Regionally, investors will shift their focus to the key inflation report this week,” Regina Capital’s Mr. Limlingan said, referring to the July US consumer price index report set to be released on Wednesday.
He placed the PSEi’s support at 6,380 and resistance at 6,500, while AB Capital Securities’ Mr. Vistan put support at 6,300 and resistance at 6,530. — J.I.D. Tabile