Shares edge higher on bargain hunting, PMI

PHILIPPINE STOCKS went up on Monday as investors bought bargains and the rebound in May manufacturing activity data provided support, though cautious sentiment kept the main benchmark below the 5,800 mark.

The Philippine Stock Exchange index (PSEi) rose by 0.53% or 30.56 points to close at 5,799.32, while the broader all shares index went up by 0.14% or 4.59 points to end at 3,285.56.

The index opened Monday’s trading session at 5,848.59, higher than Friday’s close of 5,768.76. It climbed to a high of 5,873.62 but failed to hold on to its gains as it closed at its intraday low.

“The local market rose as investors hunted for bargains following three straight days of decline. The S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) for May, which improved to 50.8 from April’s 48.3, helped in today’s climb,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“The PSEi ended higher following the steep sell-down last Friday as the market shifted into bargain hunting mode. However, gains were capped in the afternoon session as participants remained cautious. Positioning stayed defensive, with many maintaining short exposures ahead of the upcoming inflation data,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The Philippine Statistics Authority will release May inflation data on Friday (June 5).

A BusinessWorld poll of 16 economists yielded a median estimate of 7.9% for the May consumer price index (CPI), up from 7.2% in April and 1.3% in the same month last year.

If realized, this would be the quickest pace since the 8.6% in February 2023 and would match the upper end of the central bank’s 7.1%-7.9% forecast for the month.

May would also be the third month in a row that the CPI was above the central bank’s 2%-4% target for the year.

Sectoral indices were split on Monday. Services rose by 2.47% or 69.82 points to 2,891.27; financials rose by 0.05% or 1.01 points to 1,788.92; and industrials inched up by 0.73 point to 8,337.09.

Meanwhile, mining and oil declined by 0.96% or 172.68 points to 17,701.31; holding firms dropped by 0.79% or 34.92 points to 4,344.78; and property went down by 0.2% or 3.74 points to 1,861.67.

Advancers outnumbered decliners, 102 to 93, while 61 names were unchanged.

“International Container Terminal Services, Inc. was the top index gainer, climbing 3.65% to P780. Converge ICT Solutions, Inc. was the main index laggard, falling 6.55% to P10.28,” Mr. Tantiangco said.

Value turnover dropped to P8.50 billion on Monday with 564.54 million shares traded from the P26.47 billion with 1.92 billion issues that changed hands on Friday.

Net foreign selling decreased to P1.13 billion on Monday from P6.65 billion in the previous session. — Alexandria Grace C. Magno