PHILIPPINE SHARES extended their gains on Tuesday following the release of data showing remittances from overseas Filipinos increased in September.
The benchmark Philippine Stock Exchange index (PSEi) went up by 64.18 points or 1.01% to close at 6,418.94 on Tuesday, while the broader all shares index rose by 26.99 points or 0.8% to 3,379.58.
“The local market sustained its upward momentum for the day, trudging higher in the afternoon session as likely buoyed by news of the sustained rise in cash remittances in September,” China Bank Securities Corp. Research Director Rastine Mackie D. Mercado said in an e-mail.
Data from the Bangko Sentral ng Pilipinas (BSP) showed cash remittances sent through banks went up by 3.8% to $2.84 billion in September from $2.74 billion in the same period last year.
The value of cash sent home by migrant Filipinos was the highest in two months or since the $2.92 billion in July. However, the annual growth print slowed from 4.3% in August.
For the first nine months, cash remittances jumped 3.1% year-on-year to $23.825 billion from $23.117 billion in the same period in 2021. The BSP expects remittances to grow by 4% this year.
“Investors continued to buy into the Philippine market, as they remained wary of the Fed’s (US Federal Reserve) remarks on rate hikes going forward. Locally, remittances continued to remain strong, as the September data came in at 3.8%,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said.
Mercantile Securities Corp. Head Trader Jeff Radley C. See said that continued foreign buying also lifted the PSEi. Net foreign buying declined to P522.90 million on Tuesday from P681.67 million on Monday.
“Investors are waiting on the possibility that the Fed might slow down on increasing rates,” Mr. See said.
Fed Vice Chair Lael Brainard on Monday said the central bank needs to continue hiking rates to battle inflation, although potentially at a slower pace.
More Fed officials are scheduled to speak this week.
The majority of sectoral indices closed higher on Tuesday. Holding firms rose by 117.30 points or 1.94% to 6,153.86; mining and oil gained 142.40 points or 1.48% to end at 9,756.36; services went up by 23.99 points or 1.48% to 1,636.29; industrials climbed by 129.48 points or 1.4% to 9,358.02; and financials inched up by 2.78 points or 0.17% to 1,626.58.
Meanwhile, property dropped by 16.52 points or 0.58% to 2,799.72.
Value turnover declined to P5.13 billion on Tuesday with 725.68 million shares changing hands from P5.65 billion with 634.86 million issues traded on Monday.
Advancers outnumbered decliners, 102 versus 83, while 49 names closed unchanged.
China Bank Securities’ Mr. Mercado placed the PSEi’s support at 6,200-6,380 and resistance at 6,500, while Mercantile Securities’ Mr. See put its support at 6,000-6,136 and resistance at 6,600-6,836. — Ashley Erika O. Jose