PSE Index Salvages Rise After Dipping Below Milestone

The Philippine Stock Exchange (PSE) index went through the wringer again Wednesday, dipping below its milestone level before recovering at the close.

The Philippine Stock Exchange (PSE) Index, June 5, 2024

The index finished at 6,441.32 points, up by 54.90 points or 0.86 percent despite a mixed performance of the sub-indices and muted value turnover as foreign selling continued.

At the opening, market bellwether SM Investments went into a tailspin as investors sold their positions, hitting a low of P806. This drop resulted in the index reaching its lowest point of 6,367.73 before recovering due to bargain hunting.

SM Investments closed at P850, a gain of P32 or 3.91 percent, topping the most active stock roster with P673 million in trades.

Sub-indices showed varied performances: financials increased by 0.34 percent, services by 0.41 percent, property by 0.92 percent, and holding firms by 1.78 percent. Meanwhile, industrials declined by 0.05 percent and mining and oil fell by 0.57 percent.

Value turnover amounted to just P4.7 billion, down 21 percent from its average trades. Foreign buying totaled P2.134 billion, while foreign selling reached P2.768 billion, resulting in a net foreign selling of P634 million.

With the rise in the inflation rate to 3.9 percent, investors expect the dovish outlook by the Bangko Sentral ng Pilipinas (BSP) to be delayed.

Despite the Department of Finance pushing for a decline in interest rates, many companies with significant debts are struggling with their fiscal outlook. BSP Governor Eli Remolona, who advocates for a vibrant capital market to enable more companies to borrow, is eyeing a lower interest rate by August.

The market saw 103 gainers, 82 losers, and 46 unchanged stocks.

Port operator ICTSI, the second most active stock with P505 million in trades, saw its shares rise by P1.40 to P335.

Other gainers included BDO Unibank, Ayala Land, SM Prime, EastWest Bank, Security Bank, Union Bank, Metrobank, Alternergy, Meralco, First Gen, Ayala Corp, Cebu Air, Bloomberry, Atlas Mining, ABS-CBN, Globe Telecom, PLDT, DigiPlus, Marcventures, Robinsons Land, JG Summit, San Miguel, Emperador, Century Food, MREIT, Roxas and Co, Cebu Landmasters, and Universal Robina.

Among the losers were Aboitiz Equity, Jollibee Foods, ACEN Corp., Aboitiz Power, Manila Water, Semirara Mining, SPNEC, AgriNurture, Megawide, SMC Food and Beverage, Megaworld, LT Group, Philex Mining, Monde Nissin, Abacore, Cosco Capital, Alliance Global, and GT Capital.

Unchanged stocks included Bank of PI, China Bank, Aboitiz Power, Shell Pilipinas, RL Commercial REIT, Synergy Grid, Petron, DMC Holdings, and Philodrill.