PHILIPPINE SHARES inched up on Monday as more companies released their third-quarter results, although trading volume remained thin as the market stayed cautious ahead of the US presidential vote and the release of key economic data next week.
The Philippine Stock Exchange index (PSEi) rose by 0.39% or 29.01 points to 7,343.24 on Monday, while the broader all shares improved by 0.47% or 18.93 points to end at 4,036.20.
“Philippine shares made another recovery after falling in the red intraday as more earnings continue to trickle in while investors get ready for another trading week ahead,†Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
The PSEi opened Monday’s session at 7,314.42 and dropped to as low as 7,296.03 intraday before recouping its losses at the closing bell.
Companies that released their end-September results on Monday included Manila Electric Co. and BDO Unibank, Inc., among others.
First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message that the PSEi was “flattish… given the peso’s weakness and a string of unknowns like the Philippine third-quarter gross domestic product (GDP).â€
The peso closed at P58.225 per dollar on Monday, rising by 9.5 centavos from its P58.32 finish on Friday, according to Bankers Association of the Philippines data.
Meanwhile, the Philippine Statistics Authority will release third-quarter GDP data on Nov. 7.
Markets are also pricing in the possibility of Republican candidate Donald J. Trump winning the Nov. 5 US presidential election, which has pushed up US and local yields, Ms. Ulang added.
Benchmark US Treasury yields climbed to three-month highs last week, reflecting expectations of a potentially less dovish US Federal Reserve as well as possibly increased spending under the next president, Reuters reported.
Bets on Mr. Trump prevailing have risen on prediction markets in recent weeks, with the Republican seen as backing policies including tariffs that could lead to higher inflation.
At 4.23%, benchmark 10-year Treasury yields are up 43 basis points through October.
All sectoral indices ended higher on Monday. Mining and oil rose by 0.89% or 77.14 points to 8,684.12; financials went up by 0.87% or 20.92 points to 2,408.32; industrials climbed by 0.39% or 39.18 points to 9,926.93; property gained 0.28% or 8.17 points to end at 2,857.27; services added 0.2% or 4.50 points to close at 2,246.29; and holding firms inched up by 0.15% or 9.63 points to 6,190.76.
Value turnover declined to P4.13 billion on Monday with 873.27 million shares traded from the P4.2 billion with 729.88 million issues that changed hands on Friday.
Decliners outnumbered advancers, 99 versus 90, while 55 names were unchanged.
Net foreign selling stood at P47.81 million on Monday, a reversal of the P7.61 million in net buying recorded on Friday. — R.M.D. Ochave with Reuters
