Politics

PHL shares climb ahead of key economic reports

2 Mins read
REUTERS

PHILIPPINE STOCKS finished higher on Monday despite being in the red for most of the session due to profit taking ahead of the release of key economic data.

The bellwether Philippine Stock Exchange index (PSEi) went up by 13.06 points or 0.18% to close at 7,069.68 on Monday, while the broader all shares index added 8.39 points or 0.22% to end at 3,691.25.

“Philippine shares still managed to eke out gains even with Asian markets on holiday, and with the big economic releases happening later,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“There are no speeches from Fed officials this week, as the central bank will meet the following week, on Jan 31 and Feb 1. However, investors will be monitoring another batch of economic data, including the Fed’s preferred inflation measure, the personal consumption expenditure price index, due out Friday,” Mr. Limlingan said.

He added that the S&P Global manufacturing purchasing managers index will also be released on Jan. 23, while Philippine full-year 2022 gross domestic product (GDP) and December 2022 trade data will be out on Jan. 26.

GDP likely grew 6.8% in the October-to-December period in 2022, according to the median forecast of 23 economists polled by BusinessWorld, slower than the 7.6% rise in the third quarter and the 7.8% print in the same period in 2021.

For the full year, the economy may have grown 7.5%, according to median forecasts of economists, matching the high end of the Development Budget Coordination Committee’s 6.5%-7.5% target.

“Local stocks pulled back for most of the trading day due to profit taking. The market started the year strong and was ripe for a pullback. Despite the pullback, market breadth was positive as gainers outnumbered losers,” AB Capital Securities, Inc. Vice-President Jovis L. Vistan said in a Viber message.

Advancers beat decliners, 99 versus 92, while 55 names closed unchanged.

“Almost 90% of stocks are now above their medium-term average and 64% are above their long-term average,” Mr. Vistan added.

Sectoral indices ended mixed on Monday. Mining and oil lost 94.03 points or 0.79% to close at 11,724.97; industrials went down by 35.03 points or 0.35% to 9,881.16; and property declined by 10.35 points or 0.33% to end at 3,113.29.

Meanwhile, holding firms went up by 42.81 points or 0.62% to 6,885.60; financials added 4.37 points or 0.24% to end at 1,816.43; and services increased by 3.95 points or 0.22% to 1,779.

Value turnover went up to P8.35 billion on Monday with 1.24 billion shares changing hands from the P6.86 billion with 1.56 billion issues traded on Friday.

Net foreign buying dropped to P421.79 million on Monday from the P664.83 million seen the previous trading day.

AB Capital’s Mr. Vistan placed the PSEi’s support at 6,900 and resistance at 7,160, while Regina Capital’s Mr. Limlingan put support at 6,950 and resistance at 7,200. — Justine Irish D. Tabile