Share prices closed higher on Monday as investors banked on a lower inflation rate for May and the enactment of a new capital markets law to stimulate positive market sentiment.
The market opened in green territory this June “ahead of the release of the May inflation figure this Thursday,” stock brokerage SB Equities Inc. said.
“Positive sentiment was spurred by easing inflation expectations, as well as the recent enactment into law of the Capital Markets Efficiency Promotions Act (CMEPA),” it said.
Signed last week into law by President Ferdinand Marcos Jr., the CMEPA reduced the stock transaction tax to 0.1 percent from 0.6 percent.
Republic Act 12214 or CMEPA is expected to improve liquidity, trading activity, capital formation, and contribute to a broader economic growth.
The PSEi closed slightly up 0.18 percent or 11.13 points at 6,352.66.
The broader All Shares rose 0.53 percent or 19.79 points to settle at 3,743.41.
Gainers outnumbered losers 119 to 80, with 54 stocks unchanged. Trading value reached P7.08 billion.
Foreign funds bought P4.54 billion worth of shares and sold P4.12 billion, for a net buying position of P418.29 million.
The market was driven by expectations that the country’s May inflation rate remained below the government’s 2 percent to 4 percent target, said Japhet Tantiangco, an analyst from Philstocks Financial Inc.
Low inflation should give the Bangko Sentral ng Pilipinas more room to cut policy rate, he said.
Most of the sectors closed in positive territory, led by the properties which gained 1.46 percent, while the industrials lost the most with a 0.39 percent decline, Tantiangco said.
Overseas, investors were looking forward to the release of the US ISM Services Purchasing Managers Index, which gauges how inflation would go, Luis Limlingan, managing director from Regina Capital and Development Corp., said.
Most actively traded Globe Telecom Inc. gained P30 to P1,800. Bank of the Philippine Islands rose P0.70 to P139.80. BDO Unibank Inc. went up P1 to P162. Bloomberry Resorts Corp. increased by P0.22 to P4.40. International Container Terminal Services Inc. added P2 to P412. Jollibee Foods Corp. advanced by P6.40 to P229.40. Metropolitan Bank and Trust Co. rose P1.10 to P74.65. DigiPlus Interactive Corp. added P2.65 to P55.50. SM Investments Corp. climbed by P3 to P838. First Gen Corp. advanced by P2.72 to P19.22. ~0~
