July 18, 2022

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PHL shares climb to track Wall Street’s rebound

PHILIPPINE STOCKS climbed on Monday to track Wall Street’s climb last week amid better-than-expected US economic data.

The Philippine Stock Exchange index (PSEi) went up by 73.52 points or 1.18% to close at 6,268.78 on Monday, while the broader all shares index increased by 24.33 points or 0.72% to 3,370.06.

“Philippines shares echoed the positive sentiment of the US, which closed sharply higher last Friday,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Mr. Limlingan said Wall Street’s rebound on Friday was “fueled by upbeat earnings, strong economic data, and easing fears of a larger-than-expected interest rate hike by the Federal Reserve.”

“The PSEi corrected higher… but still a near two-week low, in line with the latest/overnight gains in the US stock markets to among one-month highs amid generally better US economic data (retail sales, long-term inflation expectations, consumer sentiment gauge),” Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in an e-mail.

Mr. Ricafort added that market sentiment was also affected by announcements of rollbacks in local fuel pump prices this week as global oil prices eased.

US stocks closed sharply higher on Friday. The Dow Jones Industrial Average rose 658.09 points or 2.15% to 31,288.26; the S&P 500 gained 72.78 points or 1.92% to close at 3,863.16; and the Nasdaq Composite added 201.24 points or 1.79% to end at 11,452.42.

Back home, the majority of sectoral indices ended in the green on Monday except for mining and oil, which went down by 63.20 points or 0.58% to 10,660.65, and services, which decreased by 9.19 points or 0.56% to 1,617.66.

Meanwhile, property climbed by 98.13 points or 3.56% to 2,852.48; holding firms increased by 81.45 points or 1.41% to 5,832.58; financials rose by 2.15 points or 0.14% to 1,504.33; and industrials inched up by 0.49 point to end at 9,375.32.

Value turnover declined to P4.24 billion on Monday with 521.89 million shares changing hands from the P5.64 billion with 784.99 million issues seen the previous trading day.

Decliners narrowly outnumbered advancers, 91 versus 89, while 55 names closed unchanged.

Net foreign selling decreased to P333.39 million on Monday from the P628.48 million seen the previous trading day.

Regina Capital’s Mr. Limlingan said earnings releases could set the tone for the stock market this week.

“Besides earnings, there are a few key data releases, mostly around housing. The National Association of Home Builders will post on Monday. Housing starts are out on Tuesday, and existing home sales are due on Wednesday,” he added.

Mr. Limlingan placed the PSEi’s support at 6,160 and resistance at 6,400, while RCBC’s Mr. Ricafort placed support at the 6,000-6,100 range and resistance at 6,500-6,600. — Justine Irish DP. Tabile