PHILIPPINE SHARES extended their rally to a seventh straight day on Tuesday amid better earnings from listed companies and higher remittances from overseas Filipino workers (OFW) and as foreign funds shifted to the local market amid fears of a slowdown in China.
The Philippine Stock Exchange index (PSEi) went up by 112.80 points or 1.67% to close at 6,850.64 on Tuesday, while the broader all shares index increased by 44.21 points or 1.23% to 3,625.08.
“For the seventh straight day, the local bourse rallied by 112.80 points or 1.67% to 6,850.64 as positive sentiment continues amid an improving economic environment, especially with the good earnings performance of the companies despite high inflation during the second quarter,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.
“Also, higher OFW cash remittances in June boosted the sentiment as well… There’s conviction in market participation as the net market value turnover has improved…,” Ms. Alviar said.
Cash remittances sent through banks stood at $2.75 billion in June, up 4.4% year on year, Bangko Sentral ng Pilipinas data released on Monday showed.
For the first six months of 2022, cash remittances rose by 2.9% to $15.35 billion. The central bank expects remittances to grow by 4% this year.
“Philippine stocks continued their upward momentum as funds look for alternatives after the weaker view of China. Recently, economic reports have critiqued China and the unexpected cut in its benchmark rates,” Regina Capi-tal Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
China’s central bank cut key lending rates in a surprise move on Monday to revive demand as data showed the economy unexpectedly slowing in July, with factory and retail activity squeezed by Beijing’s zero-COVID policy and a prop-erty crisis, Reuters reported.
The grim set of figures indicate the world’s second largest economy is struggling to shake off the June quarter’s hit to growth from strict coronavirus disease 2019 (COVID-19) restrictions, prompting some economists to down-grade their projections.
Back home, all sectoral indices closed higher on Tuesday. Financials went up by 43.59 points or 2.78% to 1,610.19; holding firms climbed by 127.34 points or 1.95% to 6,639.74; property jumped by 43.89 points or 1.43% to 3,096.84; services gained 16.72 points or 0.96% to end at 1,757.25; industrials increased by 92.52 points or 0.93% to 9,990.11; and mining and oil rose by 98.93 points or 0.83% to 11,919.94.
Value turnover rose to P8.89 billion on Tuesday with 967.13 million shares changing hands from P5.49 billion on Monday with 1.03 billion issues seen the previous trading day.
Advancers outnumbered decliners, 111 versus 91, while 35 names closed unchanged.
Net foreign buying went up to P1.27 billion on Tuesday from the P360.11 million seen the previous trading day. — JIDT with Reuters