Shares rise on remittances data, firms’ earnings

PHILIPPINE shares rose on Tuesday after remittances recorded a six-month high in June and as the corporate earnings season ends on a “high note.”

The Philippine Stock Exchange index (PSEi) went up by 47.73 points or 0.73% to close at 6,561.41 on Tuesday, while the all shares index climbed 19.31 points or 0.47% to 4,072.47.

“Upbeat remittances growth last month of seven percent was a pleasant and welcome respite from the slew of negative news linked to the virus,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message. “Also, [the] corporate earnings season [is] ending on a high note.”

“Philippines shares closed higher ahead of big retail earnings releases slated this week in the region while others are awaiting retail-related and industrial production data, [which] will be released later [in the day],” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a separate Viber message.

“Investors have been searching for clues as to how much the economy has recovered or will need [to] in the coming month. Meanwhile, local funds managers are taking positions as to the state of the country next week, and whether ECQ (enhanced community quarantine) in selected areas will be extended,” he added.

Money by overseas Filipino workers (OFWs) reached a six-month high in June, as more host countries gradually reopened their economies amid the rollout of coronavirus vaccines.

Cash remittances rose by 7% to $2.638 billion in June from $2.465 billion a year ago, data released by the Bangko Sentral ng Pilipinas (BSP) on Monday showed.

June marked the fifth consecutive month of year-on-year growth and the biggest inflows since the $2.89 billion recorded in December.

This brought inflows in the first half to $14.918 billion, up by 6.4% from $14.019 billion in the same period of 2020.

Meanwhile, the Health department reported 14,610 new coronavirus cases on Monday, bringing the country’s tally to 1,755,846. Active cases stood at 106,672.

The government is expected to announce new quarantine classifications by Thursday.

Majority of sectoral indices closed in the green on Tuesday except for mining and oil, which went down by 4.06 points or 0.04% to 9,504.31.

Meanwhile, property gained 37.98 points or 1.25% to 3,060.28; industrials rose 92.27 points or 0.97% to 9,583.88; services went up 11.87 points or 0.73% to finish at 1,628.80; financials inched up 6.84 points or 0.48% to 1,430.44; and holding firms gained 14.90 points or 0.23% to close at 6,476.96.

Value turnover decreased to P6.76 billion with 1.20 billion issues traded on Tuesday, from the P8.65 billion with 1.82 billion shares on Monday.

Decliners narrowly outnumbered advancers, 98 against 97, while 50 names closed unchanged.

Net foreign selling slowed to P534.4 million on Tuesday from P1.86 billion the previous day. — K.C.G. Valmonte

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