PSEi further gains on market’s growing confidence in economy

The benchmark Philippine Stock Exchange Index (PSEi) ended higher on Wednesday as investors placed early bets ahead of the upcoming third quarter earnings season.

The PSEi extended recent gains and closed the session higher by 0.42 percent, or 30.77 points, to 7,297.08 while the broader all-shares index closed up 0.33 percent, or 14.84 points, to 4,466.24.

The PSEi held its ground above the key 7,000, indicating growing optimism at the prospect of more businesses opening up and an uptick in consumer spending as the busy Christmas season approaches.

This came despite a warning from a think tank that overseas remittances, a major driver of Philippine consumer spending, was slowing down.

Pantheon Macroeconomics senior Asia economist Miguel Chanco said in a report the bump in cash remittances last June was a one-off “stemming largely from Filipinos overseas transferring more money than usual, to take advantage of the peso’s June to July sell-off.”

The report also noted that the number of overseas Filipino workers had been declining since five years ago and further reduced by the COVID-19 pandemic.

The performance among PSE subsectors showed gains for holding firms, industrial, property and services while mining and oil and financials declined.

A total of 1.34 billion shares valued at P9.44 billion changed hands on Wednesday while foreigners were net sellers to the tune of 31.57 million.

There were 106 gainers versus 80 losers, while 52 companies closed unchanged.

Monde Nissin Corp. was the most actively traded on Wednesday as it gained 2.5 percent to P15.52 per share.

It was followed by DMCI Holdings, down 3.63 percent to P8.77; Converge ICT Solutions Inc., up 5.97 percent to P32.85; AC Energy Corp., unchanged at P11.88; and International Container Terminal Services, down 2.78 percent to P175 per share.