PSEi jumps to over one-month high on PMI data

Philippine shares rose on Tuesday, with the benchmark returning above the 6,400 line to log a one-month high, on better manufacturing data and as a law that aims to boost market participation took effect.

The bellwether Philippine Stock Exchange index (PSEi) jumped by 0.92% or 58.91 points to close at 6,423.85, while the all shares index rose by 0.46% or 17.69 points to 3,799.36.

This was the PSEi’s best finish in over a month or since it closed at 6,425.80 on May 28.

“Philippine shares edged higher as the S&P Global Philippines manufacturing purchasing managers’ index (PMI) rose to 50.7 in June, signaling slight improvement in factory activity,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “Sentiment was also buoyed by the start of Capital Markets Efficiency Promotion Act (CMEPA) implementation, which reduced the STT (stock transaction tax) to 0.1%.”

The Philippines’ manufacturing PMI improved from 50.1 in May as production rebounded, S&P Global said.

“The local market bounced back amid expectations that inflation last June had remained well under control despite certain upside risks, giving the Bangko Sentral ng Pilipinas (BSP) room to continue their policy easing,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message. “Investors also cheered the appreciation of the local currency against the dollar.”

A BusinessWorld poll of 17 analysts yielded a median estimate of 1.5% for the June consumer price index (CPI), up from the 1.3% in May but still below the BSP’s 2-4% annual target.

If realized, this would be the fastest clip in three months or since 1.8% in March.

Still, this would be slower than the 3.7% print in June 2024 and is well within the BSP’s June forecast of 1.1% to 1.9%.

Majority of sectoral indices closed higher on Tuesday. Holding firms climbed by 2.20% or 121.44 points to 5,617.99; mining and oil went up by 2.18% or 207.62 points to 9,712.21; property jumped by 1.89% or 45.31 points to 2,440.04; and industrials increased by 0.24% or 22.11 points to 9,064.76.

Meanwhile, financials dropped by 0.42% or 9.76 points to 2,268.86 and services slipped by 0.13% or 3 points to 2,159.58.

“GT Capital Holdings, Inc. was the day’s index leader, jumping 5.84% to P607.50. Converge ICT Solutions, Inc. was the main index laggard, falling 3.39% to PHP 18.80,” Mr. Tantiangco said.

Value turnover declined to PHP 7.69 billion on Tuesday with 1.35 billion shares exchanged from the PHP 7.89 billion with 1.05 billion stocks traded on Monday.

Advancers outnumbered decliners, 115 versus 79, while 65 names were unchanged.

Net foreign buying increased to PHP 969.71 million on Tuesday from PHP 114.09 million on Monday. — Revin Mikhael D. Ochave