Local stocks rise after banks’ strong Q1 reports

PHILIPPINE STOCKS edged higher on Thursday amid strong earnings reports and as the national government’s budget gap narrowed last month.

The Philippine Stock Exchange index (PSEi) rose 0.03% or 2.13 points on Thursday to close at 6,574.88, while the broader all-stock index rose 0.13% or 4.51 points to close at 3,467 ,97.

“This Thursday, the local market rose by 2.13 points (0.03%) to 6,574.88. Investors are looking forward to further first quarter earnings results as initial reports from the banking sector were positive. In addition, the reduction in the country’s fiscal deficit last March was welcomed,” Philstocks Financial, Inc. said. Research and Engagement Officer Mikhail Philippe Q. Plopenio in a Viber message.

“Many, however, appear to have remained on the sidelines, amid the lack of positive catalysts,” Mr Plopenio said.

Value turnover fell to P3.90 billion on Thursday, with 752.87 million issues changing hands from P6.07 billion, while 1.13 billion issues were traded on Wednesday.

“The market’s recent rebound looks exhausted, even with the strong start to bank-led gains, and that’s as investors sell the rally while cutting back on equities and shifting funds to assets like cash, government bonds , gold, etc.,” Cristina S. Ulang, head of research at First Metro Investment Corp., said in a Viber message.

BDO Unibank, Inc. reported last week that first-quarter net profit grew 12% year-on-year to P18.5 billion, while core businesses remained strong.

Bank of the Philippine Islands saw its net profit rise 25.8% to P15.3 billion last quarter as higher revenues offset higher provisions and expenses, the bank reported this week.

Meanwhile, the country’s budget deficit fell 6.82% to 195.9 billion euros in March, compared with 210.3 billion euros in the same month a year ago, data from the Bureau of the Treasury showed.

The PSEi moved sideways as investors awaited the release of U.S. first-quarter gross domestic product (GDP) data, AB Capital Securities, Inc. Vice President Jovis L. Vistan said. in a Viber message.

“Essentially, the GDP report serves as a barometer of economic health, providing insight into inflation concerns and expectations regarding future interest rate adjustments by central banks,” he said. “Expectations surrounding the GDP report are heightened because of its implications for monetary policy decisions.”

Most sector indices ended higher. Mining and oil rose 2.74% or 235.53 points to 8,823.06; industry and services rose by 0.65% or 56.80 points to 8,691.75; financial values ​​rose by 0.19% or 3.95 points to 2,049.85; and holdings rose 0.14% or 8.66 points to end at 6,068.13.

Meanwhile, the real estate sector fell 0.60% or 15.26 points to 2,503.84 and the services sector lost 0.18% or 3.48 points to end at 1,836.37.

The advanced players defeated the decliners, 104 to 83, while 50 names closed unchanged.

Net foreign purchases reached P127.24 million on Thursday, compared to P1.86 billion in net sales on Wednesday. —RMDO