Net foreign buying at PH stock market up 382% to P71 B in 1st half

MANILA, Philippines—Foreign investors went on a buying binge in the Philippine stock market in the first half of the year, resulting in a hefty 382.3 percent year-on-year surge in net foreign inflow to P71.12 billion and allowing the local index to outperform peers across the region.

The net foreign buying recorded in the first six months stood nearly five times larger than the P14.75-billion level recorded in the same period last year, said  a report from the Philippine Stock Exchange.

This strong foreign investor appetite  allowed the main-share Philippine Stock Exchange (PSE) index to break into new all-time highs 19 times in the first semester, rising by a total of 20 percent to finish at the 5,246.41 level at the end of June.

“The market’s run in the first half has been nothing short of historic, and there’s a good chance that we will be able to extend this forward momentum as we anticipate better first-half earnings from our listed firms. The latest sovereign credit rating upgrade also provides additional support for future growth so overall, I think we are in a terrific position to keep on improving,” PSE president Hans Sicat said in a press statement.

Last July 5, the PSEi again beat its previous record high to post a fresh all-time high at 5,369.98. As of July 6, the PSEi was the top performing market in Asia, with a gain of 22.7 percent year-to-date, beating bourses in Singapore, Indonesia, Malaysia, Thailand, Vietnam, Hong Kong, India and China, among others.

In the first six months, cyclical stocks banking and property led the PSEi’s rise in the first quarter albeit all indices were on the green.

The financial index emerged as the best performer in the first half after surging by 34.6 percent to the 1,304.42 level. The financial index was likewise the best performer in terms of bottomline based on first-quarter earnings culled by the PSE.

The next best performer was the property index, which jumped by 30.1 percent to finish at 1,927.48 in the first half.

The holding firms index  rose by 28.1 percent to the 4,488.80 level.

Other indices performed as follows in the first six months: the industrial index rallied by 10.8 percent to finish at 7,839.57; the services index  climbed by 8.8 percent to 1,759.02; -the mining and oil index crept higher by 4.8 percent to 24,629.48 points.

“Just like our main index, investor confidence in Philippines Inc. is at an all-time high. What’s remarkable is that we have been able to achieve unprecedented growth even in the midst of ongoing uncertainties in the Western hemisphere and a cooling Chinese economy. This is a testament to the effectiveness of the reforms that the country has undertaken, which further contributed to the stable macroeconomic environment,” Sicat said.

The PSEi’s finish in the first six months was higher by 955.20 points from its previous close of 4,291.21 in the same period last year.

The combined market capitalization of issues listed on the PSE during the January to June period stood at P10.05 trillion, up by 12.8 percent from a year ago.

Total turnover for the first half reached P947.73 billion or 43.2 percent higher than the P661.81 billion registered in the same period the previous year. Average daily turnover stood at P7.64 billion, an increase of 45.5 percent year-on-year.