Stock market ends first half higher, with foreign investors as net buyers

July 2, 2019

The main gauge of the Philippine stock market, the PSE index (PSEi) ended the first half with a 7.1 percent gain year-to-date, which also made it the third best performing stock index in ASEAN ( Association of Southeast Asian Nations).

On June 28, the PSEi closed at 7,999.71. The All Shares index, on the other hand, climbed 8.3 percent in the first six months of the year to 4,893.78.

Four of six sector indices finished higher, with services posting the biggest year-to-date gain of 18.6 percent.

Financials and mining and oil sectors closed 3.4 percent and 7.4 percent lower, respectively, at the end of June.

“The stock market benefitted from a mix of positive internal and external factors. On the domestic front, we saw inflation stabilize which prompted an interest rate cut and a reduction in reserve requirement by the Bangko Sentral,'' said PSE president and chief executive officer Ramon Monzon.

The PSE is among the emerging markets that benefitted from foreign fund inflows which are looking for attractive returns as US interest rates remain steady,” added Monzon.

Foreign investors were net buyers in the market at the end of the six month period.

Net buying was at P 21.10 billion, a reversal from the P 65.84 billion net foreign selling at the end of June 2018.

Daily average value turnover, on the other hand, rose 9.7 percent to P 7.84 billion year-to-date. Market capitalization was at P 14.69 trillion, up by 8.4 percent since the start of the year.

Capital raised during the first half amounted to P37.89 billion.

“After the back-to-back listings in the last week of June, we are looking to more fund raising activities in the coming months,” Monzon added. DMS