Investors shrug off bad news, propel PSEi to 5,930

The local stock barometer started the week on a strong note despite a string of grim news on the local macroeconomy and corporate earnings.

The main-share Philippine Stock Exchange index (PSEi) racked up 84.9 points, or 1.45 percent, to close at 5,930.92, in line with mostly firmer stock markets across the region.

Foreigners, however, continued to unload local equities especially after last week’s report of a 16.5-percent year-on-year contraction in Philippine second quarter gross domestic product.

There was P714.27 million worth of net foreign selling for the day.

“Bargain-hunting spilled over to the start of the week, as the latest [US] employment report showed the economy added more jobs than expected last month and the latest stimulus from the United States boosted sentiment as well,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.It was earlier reported that US nonfarm payrolls had risen by 1.8 million in July, above consensus expectations of an incremental 1.5 million. German industrial production also increased by 8.9 percent in June, slightly ahead of expectations.

On Monday, the PSEi was led higher by the property counter, which gained 2.56 percent.The industrial, holding and services firms all gained over 1 percent, while the mining/oil counter added 0.75 percent.

The financial counter declined by 0.54 percent.

Value turnover for the day amounted to P4.88 billion.

There were 125 advancers that edged out 74 decliners, while 45 stocks were unchanged.The PSEi was led higher by Ayala Corp. and AGI, which both gained over 4 percent, while URC, Ayala Land and Globe Telecom all rose by over 3 percent.Jollibee and SM Prime both added over 2 percent, while ICTSI gained nearly 2 percent. SM Investments and Puregold both added over 1 percent.

Outside of the PSEi, notable gainers included Emperador, which surged by 8.24 percent ahead of its return to the PSEi basket—replacing Semirara—effective Aug. 17.

Other notable gainers outside the PSEi were Nickel Asia (+7.45 percent), Dito (+7.61 percent), Philex (+3.71 percent), NRCP (+1.59 percent) and MerryMart (+1.75 percent).

On the other hand, Semirara slid by 8.2 percent ahead of its removal from the PSEi.

Banking stocks BDO and BPI fell by 1 percent and 0.8 percent, respectively. INQ

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