PHILIPPINE STOCKS rose slightly on Monday, tracking US stocks’ performance on Friday, on expectations that Philippine headline inflation would slow again in August.
The Philippine Stock Exchange index (PSEi) on Monday rose 0.37% or 25.87 points to close at 6,923.41, while the broader all-stock index rose 0.23% or 8.60 points to close at 3,751 ,41.
“The local market rose this Monday as expectations that inflation fell last August from July’s 4.4% boosted market sentiment,” Philstocks Financial, Inc. senior research analyst Japhet Louis O. Tantiangco said. in a Viber message.
“Investors also took cues from Wall Street’s positive performance at the end of last week,” he said.
Headline inflation likely eased in August, returning within the central bank’s target range of 2-4%, amid a decline in rice and fuel prices, analysts said.
A Business world a poll of 15 analysts yielded an average estimate of 3.7% for August’s consumer price index, within the BSP’s 3.2%-4% forecast for the month.
If achieved, this would be slower than July’s nine-month high of 4.4%, which was also the first time since November 2023 that headline inflation exceeded the BSP’s 2-4% target. This would also be lower than the 5.3% recorded in August 2023.
Meanwhile, US stock markets closed higher on Friday. The Dow Jones Industrial Average Index improved 0.55% or 228.03 points to 41,563.08; the S&P 500 Index rose 1.01% or 56.44 points to 5,648.40; and the Nasdaq Composite Index rose 1.13% or 197.20 points to 17,713.63.
“Philippine stocks got off to a tepid start for September despite several private and public institutions suspending work due to the heavy rain,” Regina Capital Development Corp. sales chief Luis A. Limlingan said. in a Viber message.
“Sentiment also got a boost from the US, where their stock markets closed in the green this weekend,” Mr Limlingan added.
Sectoral indices closed mixed on Monday. Holdings rose 1.27% or 71.98 points to 5,738; services increased by 0.89% or 19.51 points to 2,200.74; and financials rose 0.55% or 11.79 points to 2,122.42.
Meanwhile, mining and oil fell 2.27% or 187.26 points to 8,039.58; real estate fell by 0.97% or 27.62 points to 2,794.60; and industrials fell 0.39% or 36.67 points to 9,310.71.
“JG Summit Holdings, Inc. led the market’s climb, rising 3.62% to P24.35. Wilcon Depot, Inc. was at the end, falling 3.51% to P18.14,” Mr. Tantiangco said.
Value turnover fell to P4.89 billion on Monday with 555.41 million shares changing hands, while 1.74 billion shares were traded on Friday.
There were more advancers than refusers, 105 against 84, while 56 names closed unchanged.
Net foreign purchases reached P419.29 million on Monday, compared to the P306.25 million in net sales recorded on Friday. — Revin Mikhael D. Ochave