PSEi up 0.80% on good earnings
THE Philippine Stock Exchange index (PSEi) gained 50.27 points, or 0.80 percent, on Tuesday to close at 6,362.30.
Philstocks Financial Inc. research associate Claire Alviar and Rizal Commercial Banking Corp. chief economist Michael Ricafort said positive earnings reports from listed companies fueled positive market sentiment for Tuesday’s trading.
The Philippine manufacturing purchasing managers’ index staying at the expansion territory this July also helped boost sentiment. However, the decline month on month brought some concerns about what the global economic outlook will be for the last half of the year.
“The sustainability of this rally is still questionable amid weak market participation and increasing geopolitical tensions between the US and China, especially with US House Speaker Nancy Pelosi’s expected Taiwan visit,” Alviar said.
For United States catalysts, Regina Capital Development Corp. Managing Director Luis Limlingan noted that several earnings reports will be out this week with particular focus on Starbucks, PayPal, Caterpillar, Advanced Micro Devices, along with other technology and retailers listed on the major American markets.
Global oil prices are also a factor.
“Oil prices dropped sharply as weak manufacturing data from China and Europe weighed on the demand outlook while investors braced for this week’s meeting of officials from OPEC (Organization of the Petroleum Exporting Countries) and other top crude producers on supply,” Limlingan said. “Brent crude futures settled $3.94, or 3.79 percent, lower at $100.03 per barrel. US West Texas Intermediate crude ended the day at $93.89 per barrel, for a loss of 4.8 percent, or $4.73.”
Net value turnover was recorded at P5.36 billion, lower than the year-to-date average of P6.31 billion with total volume at 528,352,641 shares.
Holdings firms was the only sector in the red, declining 0.03 percent.
Decliners edged advancers, 84 to 80, while 61 securities remained unchanged.