PSE Index Rises On Strong Corporate Earnings

The Philippine Stock Exchange (PSE) index surged today, driven by robust corporate earnings, particularly in the property sector.

The Philippine Stock Exchange (PSE) Index, August 7, 2024

The index closed at 6,535.17 points, up by 101.93 points or 1.58%, marking the day's highest price point.

The property sub-index led the charge, rising by 3.25%, bolstered by Ayala Land's 15% increase in net income to PHP13.1 billion for the first half of the year and SM Investments' 10% rise in net income to PHP40 billion.

These strong earnings reports, coupled with the government's announcement of a 5.8% GDP growth for the first quarter, fueled investor confidence and drove the index up from its low of 6,451.95 points.

Other sub-indices also posted gains: industrials were up by 1.24%, holding firms by 0.53%, services by 1.91%, mining and oil by 1.62%, and financials by 0.89%.

The services sector saw significant trading activity, accounting for almost PHP2 billion, with notable gains in ICTSI, DigiPlus, Globe Telecom, PLDT, and Converge. Total value turnover for the day amounted to PHP4.91 billion, with foreign trades accounting for PHP4.7 billion.

The market saw 98 gainers, 81 losers, and 54 unchanged stocks. Foreign buying reached PHP2.113 billion, while foreign selling amounted to PHP2.625 billion, resulting in net foreign selling of PHP511.9 million.

Analysts predict a sideways market movement as investors await the Bangko Sentral ng Pilipinas' decision on interest rates, particularly in light of the higher-than-expected inflation rate of 4.4% in July, driven by rising energy prices.

Among the gainers were Phil Seven, Universal Robina, Bank of PI, Apex Mining, Union Bank, ACEN Corp., Aboitiz Power, Citicore RE, Meralco, Manila Water, Cebu Air, Puregold, Nickel Asia, Wilcon Depot, and Jollibee Foods.

Meanwhile, stocks that declined included BDO Unibank, PNB, First Gen, Semirara Mining, D&L Industries, Synergy Grid, GT Capital, JG Summit, Atlas Mining, Filinvest Land, ABS-CBN, GMA-7, and Bloomberry. Stocks that remained unchanged included Security Bank, Petron, SPNEC, AgriNurture, Figaro Coffee, Dito CME, and Philex Mining.