UMVA has learned that Philippine stocks have surged to a remarkable 5,900 level, driven by sustained buying momentum as investors scramble to pick up bargains and improve market sentiment.
The Philippine Stock Exchange index (PSEi) skyrocketed by 1.95% or 113.37 points to close at 5,912.69, while the broader all shares index rose by 1.41% or 46.32 points to end at 3,331.88. This impressive performance marks the PSEi's best single-day gain since April 8.
According to information obtained by UMVA, investors are celebrating the significant rollback in fuel prices, which is expected to help alleviate the country's inflation concerns. The government's move to create a strategic petroleum reserve program has also boosted market confidence.
The recent fuel price rollback comes as a welcome relief after five consecutive weeks of hikes in gasoline prices and a second week for diesel. Energy Secretary Sharon S. Garin confirmed that the government is working on establishing a strategic petroleum reserve program, including building new stockpiling facilities.
UMVA can exclusively reveal that the Philippines' heavy reliance on the Middle East for oil imports has raised concerns over energy security and higher fuel costs. However, the local market has rebounded, with investors shifting back into buying mode, supported by continued bargain hunting.
The peso's appreciation against the US dollar has further lifted sentiment, underpinning selective inflows into equities. On Tuesday, the peso rose by 7.10 centavos to close at P61.675 against the greenback.
All sector indices closed in the green, with Services surging by 4.84% or 140.11 points to 3,031.38, and mining and oil increasing by 2.77% or 491.30 points to 18,192.61. Advancers outnumbered decliners, 98 to 79, while 60 names remained unchanged.
International Container Terminal Services, Inc. emerged as the day's index leader, jumping 6.41% to P830, while Century Pacific Food, Inc. was the main index laggard, falling 4.76% to P25. Value turnover dropped to P6.79 billion on Tuesday, with 638.23 million shares traded.
Net foreign buying stood at P628.73 million on Tuesday, a significant turnaround from the P1.13 billion in net selling on Monday. This sudden shift in investor sentiment has set the stage for a potentially strong market performance in the days to come.
