The local stock index remained in the 6,800- to 6,900-point range from September 2 to 6, as the lower 3.3-percent inflation rate in August and the peso trading at below P57 to a US dollar helped keep up positive investor sentiment.
However, the Philippine Stock Exchange index (PSEi) still found it hard to break through the 7,000-point resistance as there were still investors who stayed at the sidelines.
On a weekly average, the PSEi logged 6,906.51 points from September 2 to 6, which is 0.34-percent lower than the 6,930.15-point average recorded in the shortened trading week of August 27 to 30.
Market turnover was lower from September 2 to 6, averaging P5.3 billion daily, or a 33.75-percent drop from the P8-billion average from August 27 to 30. This shows that market participation dropped, which may have made it hard for the PSEi to advance past the 7,000-point mark.
At the start of last week’s trading on September 2, the PSEi closed higher amid expectations that headline inflation eased in August, while the peso closed weaker against the dollar.
The PSEi gained 25.87 points to close at 6,923.41 while the All Shares index slightly went up by 8.60 points to 3,751.41.
"The local market rose this Monday (September 2) by 0.38 percent to 6,923.41. Expectations that inflation had declined last August compared to July’s 4.4 percent drove market sentiment," Philstocks Financial Research Manager Japhet Tantiangco said.
"This comes following the BSP’s range forecast for August’s inflation which is from 3.2 percent to 4.0 percent. Investors also took cues from Wall Street’s positive performance in last week’s close," Tantiangco added.
Sectors were mixed with the conglomerates rising the most, up by 1.27 percent.
Miners were at the bottom declining by 2.28 percent.
Advancers edged decliners 105 to 84.
Meanwhile, the peso weakened closing at P56.38 to a dollar from its P56.111 finish last August 30.
Meanwhile, trading was shortened on August 3 following the suspension of government work in the National Capital Region (NCR) due to Tropical Storm Enteng.
On August 3, the PSEi shed 40.49 points to 6,882.92, while All Shares went down by 20.63 points to 3,730.78 because of profit taking.
"The local market declined this Tuesday by 0.58 percent to 6,882.92 as investors took profits after a two-day climb," Tantiangco said.
"The local currency’s depreciation against the US dollar also weighed on the market. Trading has been tepid as investors continue to wait for catalysts, primarily the Philippines’ August inflation data to be released this week," Tantiangco added.
Among sectors, only the Holding Firms closed the day with gains, up by 0.11 percent, while Services lost the most, declining by 1.23 percent.
Decliners edged advancers 109 to 83.
Meanwhile, the peso depreciated, closing at P56.61 to a dollar from the P56.38 finish on September 2.
The weighted average was P56.636 while volume of trade went up to $1.8 billion from $802.6 million during the shortened foreign exchange trading day on September 2.
On September 4, the PSEi inched down by 0.01 percent, or less than 1 point, to 6,882.12, with the All Shares barometer slipped by 0.03 percent to 3,729.52 level.
Sectoral indices were mixed with winners include Financials (+0.99 percent), Mining and Oil (+0.29 percent), and Property (+0.10 percent).
Losers during mid-week’s trading are Industrial, down by 1.02 percent; Services, contracted by 0.20 percent; and Holding Firms, declined by 0.09 percent.
“The negative spillovers from Wall Street amid renewed concerns over the US economy’s health weighed on the market. The local bourse fell as low as 6,759.93 intra-day but had its losses trimmed on the back of bargain hunting,” Tantiangco said.
“Trading was still tepid as investors await the Philippines’ August inflation data. Net value turnover stood at P4.71 billion, below the year-to-date average of P5 billion. Foreigners were net buyers with net inflows amounting to P145.73 million," Tantiangco added.
Meanwhile, the peso finished the day at P56.58 to the US dollar from closing at $56.61 on September 3.
The average level for the day stood at $56.57 to the greenback.
BOUNCING BACK ON LOWER INFLATION
The trading day of September 5 saw the local bourse closing in green territory as the government announced the lower 3.3-percent inflation for August.
Also, the Philippine peso ended the day stronger against the US dollar.
The PSEi snapped its two-day shedding on September 5, finishing 0.38-percent higher at 6,907.97 points.
The All Shares barometer grew 0.26 percent to 3,739.27 points.
Counters were mixed again and those ending in the green included Services, Industrial, and Financials, while losers included Property, Holding Firms, and Mining and Oil.
"Philippine shares overcame the negative price action overseas to finish higher at 6,907.97. Meanwhile, Wall Street edged lower yesterday, with all three major indices down for the week as key employment reports loom. Investors are anticipating Thursday's release of weekly jobless claims data, followed by the August non-farm payrolls report on Friday," Regina Capital Development Corp. head of sales Luis Limlingan said.
"Investor sentiment got a boost as the latest August CPI (consumer price index),data came in better than expected at 3.3 percent," Limlingan said.
He said value turnover for the day was at P4.59 billion net of extraordinary block sales, with the decliners (94) almost at par with the advancers (96), while 46 listed stocks were unchanged.
Meanwhile, the local currency finished strong gaining P0.37 at P56.21 to the US dollar from P56.58 to the greenback closing on September 4.
The peso opened the day at P56.50 before trading between P56.21 and P56.51.
Average exchange rate of peso and dollar stood at P56.37.
On September 6, the local bourse closed strong on on the back of better year-on-year employment rate figures for July 2024, while the Philippine peso was at its strongest in five and a half months.
The PSEi ended the week increasing by 0.41 percent to 6,936.09 points, with the All Shares index improved by 0.36 percent to the 3,752.86 level.
Tantiangco said aside from the lower July unemployment rate year-on-year, investors continued to digest the easing of the August inflation.
“The decline of inflation from July to August is seen to strengthen the case for the continuation of the BSP’s monetary policy easing. Investors also appreciated the local currency’s strengthening against the US dollar,” Tantiangco said.
At the end of the trading, only Services and Mining and Oil shed their counters by 0.82 and 0.15 percent, respectively.
The biggest winner for the day was Holding Firms, gaining by 0.96 percent; followed by Financials, up by 0.89 percent; Property, up by 0.87 percent; and Industrials, up by 0.22 percent.
“Trading was quite active with net value turnover at P5.85 billion, above the year-to-date average of P5.01 billion. Foreigners were net buyers with net inflows amounting to P407.48 million,” Tantiangco said.
Meanwhile, the peso ended the day at its strongest level since March 18, 2024.
The exchange rate at the end of week closed at P55.91 to the US dollar, stronger by P0.30 than the P56.21 against the greenback recorded on September 5.
In the next months, market investors will look for signs of better gross domestic product (GDP) growth for the third quarter, and the meeting of the US Federal Reserve on September 17-18 where it will decide whether to reduce policy rates.
Also, the 7,000-point market is still seen as the resistance level.
