Shares up on positive sentiment, foreign buying
PHILIPPINE SHARES climbed on Wednesday amid an improved economic outlook and strong foreign buying.
The benchmark Philippine Stock Exchange index rose by 44.35 points or 0.71% to 6,253.18, while the broader all shares index increased by 15.44 points or 0.46% to 3,330.04.
“The local bourse gained by 44.35 points (0.71%) to 6,253.18, thanks to strong foreign buying, recording a net inflow of P1.02 billion. Moreover, Oxford Economics’ upward adjustment of the Philippines’ economic growth forecast from 4.5% to 5% helped lift the market,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.
Oxford Economics recently said that it expects Philippine gross domestic product (GDP) to grow by 5% this year, faster than its previous projection of 4.5%.
Philippine GDP expanded 5.9% in the third quarter, faster than 4.3% in the second quarter but slower than 7.7% a year earlier.
For the first nine months, economic growth averaged 5.5%, still below the government’s 6-7% full-year target.
Meanwhile, net foreign buying ballooned to P1.02 billion on Wednesday from P120.35 million on Tuesday.
“The local bourse has maintained its upward trajectory, still propelled by the recent positive developments in macroeconomic factors, including easing inflation in both the US and the Philippines, along with favorable third quarter earnings results,” Unicapital Securities, Inc. Senior Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message.
Philippine headline inflation fell to a three-month low of 4.9% in October from 6.1% in September. For the 10-month period, inflation averaged 6.4%.
Meanwhile, the US consumer price index (CPI) was unchanged in October for the first time in more than a year following a 0.4% rise in September. On an annual basis, the CPI rose by 3.2% after going up by 3.7% in September.
All sectoral indices ended higher on Wednesday. Mining and oil surged by 180.65 points or 1.91% to 9,626.98; industrials went up by 152.29 points or 1.73% to 8,913.03; services climbed by 14.17 points or 0.94% to 1,521.59; holding firms rose by 27.88 points or 0.46% to 5,967.62; property improved by 6.80 points or 0.25% to end at 2,647.36; and financials increased by 0.34 point or 0.01% to 1,751.76.
“Within the index members, consumer foods’ stocks Universal Robina Corp. and Monde Nissin Corp. were at the top, gaining by 5.36% and 4.73%, respectively. However, Metropolitan Bank and Trust Co. had the biggest loss, dropping by 1.52%,” Ms. Alviar said.
Value turnover reached P4.01 billion on Wednesday with 296.08 million issues switching hands, higher than the P3.91 billion with 422.56 million shares recorded the previous trading day.
Advancers beat decliners, 93 versus 77, while 48 issues closed unchanged. — RMDO
