PMI Data Sharing, Positive Q2 Business Results

PHILIPPINE SHARES rose on Tuesday amid improving second-quarter earnings of listed companies and the continued expansion of manufacturing activity in the country.

The flagship Philippine Stock Exchange Index (PSEi) rose 50.27 points or 0.79% to close at 6,362.30 on Tuesday, while the broader all-stock index rose 18.67 points or 0.55% at 3,411.59.

“Philippine stocks surged towards the end of the session as investors clawed back some of the index heavyweights as corporate earnings improved and global oil prices began to decline,” Marc said. Kebinson L. Lood, head of online trading at Timson Securities, Inc. in a Viber message.

“The local stock market gained 50.27 points [or] 0.80% to 6,362.30 amid strong results so far, especially from index members,” said Philstocks Financial, Inc. research analyst Claire T. Alviar in a Viber message.

Ms Alviar added that market sentiment was also boosted by the latest S&P Global Philippines Manufacturing PMI Index (PMI) report, which showed factory activity remained in expansion territory.

Manufacturing activity in the Philippines slowed in July as production and new orders fell, signaling weaker global demand, S&P Global said on Monday.

The S&P Global Philippines Manufacturing PMI reading came in at 50.8 in July, lower than June’s reading of 53.8.

A PMI reading above 50 indicates an improvement in operating conditions from the previous month, while a reading below 50 signals deterioration.

The majority of sector indices closed in the green on Tuesday with the exception of holding companies which lost 1.61 points or 0.02% to end at 6,013.80.

Meanwhile, Mining & Oil gained 309.78 points or 2.71% to close at 11,717.76; services jumped 37.89 points or 2.31% to 1,678.22; real estate climbed 28.25 points or 0.98% to 2,890.37; industrials rose 72.40 points or 0.77% to 9,422.90; and financials rose 5.69 points or 0.38% to 1,488.08.

Turnover in value jumped to 5.87 billion pesos on Tuesday with 528.35 million shares traded for 5.13 billion pesos with 396.95 million shows viewed on Monday.

Decliners narrowly edged out leads, 84 to 80, while 61 names closed unchanged.

Foreigners turned buyers, posting 36.44 million pesos in net purchases on Tuesday against 288.40 million pesos in net sales the previous trading day.

Mr. Lood of Timson Securities said investors were anticipating Friday’s release of the July Philippines inflation report, other corporate earnings and the latest U.S. jobs data, also due Friday. He put PSEi support at 5,900 and resistance at 6,800.

Meanwhile, Philstocks Financial’s Ms Alviar placed PSEi support between 6,100 and 6,150 and resistance at 6,400.

“[The] the sustainability of the rally is still questionable amid low market participation and growing geopolitical tensions between the US and China,” Ms. Alviar said. — JID table

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