Philippine stocks expanded their climb on Monday as investors bought bargaining stocks and expected a slower inflation rate in July.
The Philippines’ Philippine Stock Exchange Index (PSEI) rose 0.67% or 42.52 points to close at 6,348.65 points, while the widespread all-stock index rose 0.39% or 14.93 points to 3,766.60.
“With investors bargaining, the lateral movement of the local market ends in a positive field,” Japhet Louis O. Tantiangco, research manager at Philstocks Financial Inc., said in a Viber message.
“The expectation of inflation in July last year to maintain good control will also help eliminate the market,” he added.
The Philippine Statistics Agency (PSA) plans to release inflation data for July on Tuesday (August 5). one BusinessWorld Within the central bank’s projection range of 0.5%-1.3%, a poll of 17 analysts showed a median estimate of the Consumer Price Index (CPI) in July at 1.2%.
If met, the July CPI print will be slower than the 1.4% in June and the 4.4% clip in the same month a year ago.
This will also be the slowest in nearly six years, or since the 0.6% print release released in October 2019.
Regina Capital Development Corp. also said in a Viber message: “PSEI may be looking for bargains after a week of sales pressure, with psei closing at 6,348.65, up 0.67%.
“In addition, investors are still waiting for GDP and inflation data, which may prompt them to take a stronger stance,” he added.
PSA will release its second-quarter GDP data on Thursday, August 7. GDP may have increased by 5.5% during this period, a single BusinessWorld A poll by 18 analysts showed. In the first quarter, this will be faster than the 5.4% rate, but slower than the 6.5% expansion in the second quarter of last year.
The government is growing by 5.5%-6.5% this year.
The sector indexes were mixed on Monday. Property rose 2.79% or 66.08 points to 2,426.74; mining and oil rose 2.3% or 202.46 points to 8,975.11; financial revenue rose 1.49% or 32.75 points to 2,224.99.
Meanwhile, holdings fell 0.56% or 30.07 points to 5,342.31; industrial communities fell 0.36% or 33.41 points to 9,069.79; and service retreated to 0.06% or 1.47 points to 2,212.39.
Mr Tantiangco said: “Ayala Land, Inc. was the index leader for the day, jumping 5.56% to P26.60. Bloomberry Resorts Corp. was at its lowest point, down 2.68% to P3.99.”
Value turnover fell slightly to 5.2 billion pesos on Monday, with shares trading from 5.59 billion shares and 1.28 billion shares exchanged on Friday.
Progressors have 100 to 91 pairs of skewers, while 61 names have not changed.
On Monday, on Friday, net foreign sales increased to Phillipino pesos 257.7 million. – Revin Mikhael D. Ochave
