The Philippine Stock Exchange index (PSEi) climbed back above 7,000 points on continuing bargain hunting, as well as favorable data on overseas Filipino workers (OFW) remittances for month of August.
The benchmark stock index was up 0.53 percent or 37.39 points at 7,028.58, while the All Shares index inched up 0.12 percent or 4.80 points to 4,163.09.
The market bucked the trend of most Asian markets, which tracked the US markets’ overnight declines. Analysts said Thursday’s optimism was led by reports of OFW cash remittances improving 5.93 percent to $2.053 billion in August from $1.938 billion a year ago. Remittances for January to August likewise were up 6.47 percent to $17.232 billion from $16.185 billion in the corresponding period in 2013.
“The market rallied due to investors’ continued bargain hunting of the index’s heavyweights. I think it is just a short-term rally,” Juan Rafael Supangco, research head at Angping & Associates Securities Inc., said in a phone interview.
“Yesterday, we also saw bargain hunting. But for today, it was driven by positive data of the OFW remittances for August,” he added.
Supangco said that the market is expected to have few leaps along the way in the short term, but the negative sentiment will linger until the release of the third-quarter corporate earnings and the quarterly MSCI Philippines index rebalancing in November.
“The rally will stay a bit longer, but a lot of negative factors will affect the market in the near term. The appreciation is just short-term. In long-term, there will be some downside–maybe one or two weeks,” Supangco said.
“But it will be good once the third quarter earnings will be released. The third quarter MSCI rebalancing will also bring optimism, but only for a short while,” he added.
Among the sectoral indices, mining and oil lost more than 200 points and holding firms edged down, while the remaining indices gained.
Supangco said the mining and oil counter was driven by the joint declines by Semirara Mining and Power Corp. as well as Nickel Asia Corp., which are heavyweights on the mining and oil index.
The mining and oil counter slumped 1.43 percent or 231.73 points to 15,970.61, while holding firms dipped 0.18 percent or 10.94 points to 6,091.36.
Financials and industrials were both up by 0.08 percent to end at 1,648.49 and 11,230.39, respectively; services gained 1.37 percent or 28.80 points to 2,136.18; and property went up 1.07 percent or 29.14 points to 2,747.10.
The top gainer among the most active issues on the day was PLDT, which added 2.80 percent or P86 to P3,160 per share, while the active loser was Megaworld Corp., down 1.26 percent or P0.06 at P4.69 per share.
Advancers outnumbered decliners, 111 to 54, while 50 issues were unchanged. Total was somewhat lighter than earlier in the week at 6 billion shares, valued at P8.08 billion.
On Wednesday, the PSEi increased 0.65 percent or 45.13 points to 6,991.19 on bargain hunting in the wake of sharp declines to start the week. The wider All Shares index also went up 0.54 percent or 22.31 points to 4,158.29.