Share prices ended higher Tuesday on continued bargain hunting as investors wait for clues on whether or not the strictest lockdown measures will continue to be implemented on the nation’s key cities.
The Philippine Stock Exchange index (PSEi) was up 47.73 points to 6,561.41, a 0.73 percent hike.
The broader all shares index was up 19.31 points to 4,072.47, a 0.48 percent hike. Losers edged gainers 98 to 97 with 50 stocks unchanged. Trading turnover reached P6.76 billion.
Luis Limlingan, managing director at Regina Capital Development Corp., noted the uptick in the market amid investors “searching for clues as to how much the economy has recovered or will need in the coming month.”
“Local funds managers are taking positions as to the state of the country next week, and whether ECQ (enhanced community quarantine) in selected areas will be extended,” he said.
At the close of the trading session, Synergy Grid and Development Philippines Inc. said it looks to raise P28.75 billion in funding through a follow-on offering of 1.15 billion shares at an offer price of P15 to P25 per share.
The proceeds will be used by the company to participate in a non-voting preferred share sale of its operating unit National Grid Corporation of the Philippines.
The peso closed at 50.401 to the dollar, up from 50.645 on Monday. It opened at 50.65, hitting a high of 50.32 and a low of 50.67. Trading turnover reached $859.9 million.
Most Asian currencies softened on Tuesday, with South Korea’s won slipping to a nearly one-year low, as weaker-than-expected Chinese economic data and rising coronavirus cases in the region raised concerns over growth prospects, Reuters reported.
China, the region’s largest trading partner, logged a sharp slowdown in its July retail sales growth and factory output, data showed on Monday, as new COVID-19 outbreaks, social restrictions, and floods disrupted business operations.
“The highly contagious Delta variant, which led to a resurgence in local cases at the end of July, also poses a downside risk to economic activity in Q3 despite a decline in daily cases over the past few days,” analysts at ANZ said in a note.
Owing to the risk from surging cases, the Australian bank cut its 2021 growth forecast for China to 8.3 percent from 8.8 percent previously, saying economic growth will be of secondary priority behind a zero COVID-19 tolerance policy.
South Korean markets, opening after a long weekend, were dented by concerns about slower growth in China, its biggest trading partner, as well as over rising Delta variant cases.
In Malaysia, the ringgit stabilized after softening to a one-year low on Monday after the cabinet led by Prime Minister Muhyiddin Yassin resigned and pushed the country into a period of political uncertainty at a time of economic downturn.
“The situation remains extremely fluid and subjected to the moves and countermoves by a multitude of players in a fractured landscape,” analysts at OCBC Bank said.
“So far, while there have been some market movements, including Malaysian ringgit weakening, the degree remains small and discreet, fortunately,” they said.
The ringgit last traded at 4.2360 per dollar after weakening to 4.2430 the previous day, while equities advanced nearly a percent on Tuesday to hit their highest since lateJuly.
Most actively traded Globe Telecom Inc. was up P72 to P2,082. AC Energy Corp. was down P0.21 to P9.01. International Container Terminal Services Inc. was up P2 to P184. Ayala Land Inc. was up P0.05 to P32.85. BDO Unibank Inc. was up P2.30 to P111.10. Ayala Corp. was down P7 to P715. Universal Robina Corp. was up P4 to P140.90. Bank of the Philippine Islands was down P0.80 to P83.20. GMA Network Inc. was down P0.82 to P13.58. Manila Electric Co. was up P1 to P292. – Ruelle Castro
