STOCKS climbed at the start of the shortened trading week, tracking positive finishes overseas.
The 30-member Philippine Stock Exchange index (PSEi) rose 0.39% or 30.56 points to 7,771.30 on Monday. The broader all-shares index likewise went up 0.30% or 14.44 points to 4,704.54.
“Philippine shares closed generally higher along with US stocks on Friday as investors brushed aside tensions between the US and major allies as a meeting of leaders of the Group of Seven (G7) industrialized nations got under way in Canada,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile message.
Last Friday, the Dow Jones Industrial Average added 0.30% or 75.12 points to 25,316.53, while the S&P 500 index edged higher by 0.30% or 8.66 points to 2,779.98. The Nasdaq Composite Index closed 0.14% or 10.44 points higher to 7,645.51.
Most Asian indices also finished on a positive note on Monday, shrugging aside the cautious mood after the G7 Summit.
After the G7 Summit, US President Donald J. Trump will be meeting with North Korean leader Kim Jong Un in Singapore Tuesday, June 12, to come up with an agreement on denuclearization.
“Investors are viewing the meeting between Trump and Kim to be a positive catalyst and will be observed for the week…” Mr. Limlingan said.
Back home, four sectoral indices closed in positive territory. The mining and oil sub-index firmed up 1.24% or 126.38 points to 10,321.51, while holding firms also posted a 1.24% climb or 95.37 points to 7,760.23. Industrials jumped 0.41% or 44.50 points to 10,909.90 and services picked up 0.26% or 4.01 points to 1,506.78.
Meanwhile, property dropped 0.92% or 35.11 points to 3,769.11, followed by financials which gave up 0.11% or 2.16 points to 1,923.73.
Trading was muted, with 849.38 million issues switching hands resulting in a value turnover of only P4.01 billion, further dropping from the already low turnover of P5.28 billion recorded last Friday.
“The upcoming holidays and the weather’s downpour really dampened the PSEi today as it ended with the lowest value turnover of the year of only P4.0B,” Papa Securities Corp. trader Gabriel Perez said in an e-mail on Monday. “[The peso] depreciating to a new 2018 high of as much as P52.96 ahead of the Fed’s meeting…may have also contributed to the muted movement — more so that expectations are for a hike abroad.”
The US Federal Reserve holds a two-day policy review on June 12-13, where it is expected to hike borrowing costs anew after a similar move in March.
Advancers trumped decliners, 103 to 84, while 49 names were unchanged.
Foreign selling prevailed, with net outflows totaling P282.33 million, although lower than the previous session’s P671.65-million net sales.
Financial markets will be closed Tuesday, June 12, and on Friday for the country’s Independence Day and Eid’l Fitr or the Feast of Ramadan, respectively. — Arra B. Francia