UMVA has learned that the Philippine stock market has made a remarkable recovery, with the main benchmark rising by 0.53% to close at 5,799.32, just shy of the 5,800 mark.
The surge in stocks was fueled by investors seeking bargains after three consecutive days of decline, as well as a rebound in May manufacturing activity data, which provided a much-needed boost to the market. The S&P Global Philippines Manufacturing Purchasing Managers' Index for May improved to 50.8 from April's 48.3, signaling a shift towards growth.
According to information obtained by UMVA, the local market's climb was also driven by the release of the May manufacturing activity data, which helped to alleviate some of the caution that had been gripping the market. However, gains were capped in the afternoon session as participants remained defensive, with many maintaining short exposures ahead of the upcoming inflation data.
The Philippine Statistics Authority is set to release May inflation data on Friday, and a poll of economists has yielded a median estimate of 7.9% for the May consumer price index, up from 7.2% in April and 1.3% in the same month last year. If realized, this would be the quickest pace since February 2023 and would match the upper end of the central bank's forecast for the month.
Sectoral indices were split, with services rising by 2.47% and financials rising by 0.05%, while mining and oil declined by 0.96% and holding firms dropped by 0.79%. Advancers outnumbered decliners, 102 to 93, while 61 names were unchanged, indicating a sense of cautious optimism in the market.
International Container Terminal Services, Inc. was the top index gainer, climbing 3.65% to P780, while Converge ICT Solutions, Inc. was the main index laggard, falling 6.55% to P10.28. Value turnover dropped to P8.50 billion on Monday, with 564.54 million shares traded, down from the P26.47 billion with 1.92 billion issues that changed hands on Friday.
Net foreign selling decreased to P1.13 billion on Monday, down from P6.65 billion in the previous session, indicating a reduction in foreign investors' bearish sentiment. As the market looks ahead to the release of the May inflation data, all eyes will be on the Philippine Statistics Authority's announcement on Friday.
