PSE Index In Much-Needed Surge

The Philippine Stock Exchange (PSE) index surged today, with all the sub-indices posting gains and actually reaching a higher milestone level before closing lower due to profit-taking, settling at 6,682.78 points, up by 64.09 points or 0.97 percent.

The Philippine Stock Exchange (PSE) Index, May 20, 2024

Analysts noted that the 6,700-point level remained a significant challenge for the market. Every time the index rises above this level, such as today when it reached a high of 6,703.00 points, it tends to retreat anew.

The resistance level remains at 6,800 points, but the market consistently falls below the 6,700-point mark whenever it is tested.

Following the pronouncement from the Bangko Sentral ng Pilipinas regarding the possibility of two interest rate cuts in August, analysts are convinced that the market may reach the 6,800 threshold.

Gains in blue-chip stocks such as Globe Telecom, which surpassed the P2,000 level on speculation of its GCash IPO, ACEN rising from its P3.50 level, and banking stocks suddenly gaining traction, have reinforced such predictions.

Financials rose by 1.68 percent as BDO Unibank, Bank of PI, Metrobank, EastWest, and Security Bank all saw increases today.

Industrial stocks advanced by 0.78 percent, holding firms by 0.28 percent, with market bellwether SM Investments closing unchanged. Services rose by 1.48 percent, property by 0.51 percent, and mining and oil posted a hefty gain of 4.95 percent as the gold price reached $2,452.70.

Emerging as the most active stock was Ayala Land with P656 million in trade value as it closed 30 centavos higher at P29.70, followed by BDO with P540 million in trade value as it rose by P1.30 to P140.

ICTSI was the third most active with P379 million in trade value as it rose by P5.40 to P339.40.

Value turnover amounted to P5.797 billion with 122 gainers, 72 losers, and 42 shares remaining unchanged. Foreign buying amounted to P2.995 billion while foreign selling reached P3.243 billion, resulting in net foreign selling of P248.1 million.

Among the gainers were Keppel Properties, Nickel Asia, AgriNurture, Wilcon Depot, Alternergy, DMC Holdings, LT Group, DoubleDragon, Megaworld, Figaro Coffee, SMC Food and Beverage, Megaworld, D&L Industries, Century Food, Meralco, Manila Water, Jollibee Foods, CEMEX Holdings, GT Capital, JG Summit, PLDT, LT Group, Megawide, Ginebra, and Puregold.

The losing shares included Aboitiz Power, First Gen, Petron, SPNEC, Axelum, Emperador, San Miguel, Citicore RT, Dito CME, Belle Corp., ABS-CBN, DigiPlus, PAL, and Monde Nissin.

Those unchanged were PNB, ACEN Corp, Semirara Mining, Synergy Grid, Aboitiz Equity, SM Prime, GMA-7, Robinsons Retail, and Philodrill.