PSE Index Surges, Closes At Year-High

The Philippine Stock Exchange (PSE) index surged by two milestone levels today, closing at a year-high of 7,417.25 points, a significant increase of 164.93 points or 2.27%.

The Philippine Stock Exchange (PSE) Index, September 23, 2024

Value turnover was a third higher than usual, and the Top 10 most active issues all ended in the green.

The financial sector posted a notable rise of 3.69%, driven by a surge in banking stocks. This came after projections that the Bangko Sentral ng Pilipinas (BSP) may further reduce interest rates, following a 50 basis-point hike by the U.S. Federal Reserve based on readings that inflation was under control.

Earlier, the BSP had cut interest rates by 25 basis points, with potential for at least two more cuts before the year's end.

Analysts expect increased incomes for banks as a result, with Metrobank leading the pack with P980 million in trades. It hit an intraday high of P81.85 before closing at P79.45, up by P1.85.

Other banking stocks in the Top 10 most-traded shares were BDO Unibank, Security Bank, and Bank of the Philippine Islands (BPI), pushing the index well beyond its resistance level of 7,250.

The mining and oil sub-index was the only sector to post a loss, down by 0.1%. Meanwhile, other sectors saw gains: industrials rose by 1.07%, holding firms by 1.95%, services by 2.01%, and property by 1.72%.

Today's close marked the seventh consecutive trading day that the index has held above the elusive 7,000-point mark.

Other banking stocks that posted gains included PNB, China Bank, Union Bank, and PNB. Market bellwether SM Investments closed P21 higher at P991. Second-liners Global Estate and Axelum were among the Top 10 gainers, with share price increases of 9.23% and 13.07%, respectively.

Total value turnover amounted to P8.68 billion, with foreign trades accounting for P7.67 billion. Net foreign buying reached P1.77 billion, as foreign selling totaled P2.9 billion against P4.72 billion in foreign purchases.

There were 121 gainers, 93 losers, and 52 unchanged stocks.

Among the gainers were ICTSI, Ayala Land, SM Prime, Robinsons Land, Ayala Corp., Jollibee Foods, Cosco Capital, DMC Holdings, SPNEC, Century Food, GT Capital, Aboitiz Equity, Aboitiz Power, Meralco, Universal Robina, Semirara Mining, LT Group, Citicore RT, PAL, Apex Mining, Nickel Asia, OceanaGold, Philodrill, Bloomberry, PhilWeb, MRC Allied, Globe Telecom, and Wilcon Depot.

The losers included San Miguel, Manila Water, First Philippine Holdings, Citicore REIT, Basic Energy, Synergy Grid, AgriNurture, Monde Nissin, Megawide, CEMEX Holdings, Abacore, DoubleDragon, Shang Properties, GMA-7, Cebu Air, Converge, and Philex Mining.

Stocks that remained unchanged included Vitarich, Fruitas, Figaro Coffee, Alliance Global, Ionics, Metro Retail, SFA Semicon, Century Properties, Haus Talk, Atlas Mining, Oriental Petroleum, and Metro Retail.