September Remittance Data Boosts Stocks

PHILIPPINE SHARES rose on Tuesday after data showed that remittances from abroad Filipinos surged in September.

On Tuesday, the benchmark Philippine Stock Exchange index (PSEi) increased 64.18 points, or 1.01%, to close at 6,418.94, while the broader all-shares index rose 26.99 points, or 0.8%, to 3,379.58.

“The local market maintained its upward momentum for the day, trudging higher in the afternoon session, possibly bolstered by news of a continuous increase in cash remittances in September,” China Bank Securities Corp. said. Rastine Mackie D. Mercado, Research Director, stated in an e-mail.

According to data from the Bangko Sentral ng Pilipinas (BSP), cash remittances transmitted through banks increased by 3.8% in September to $2.84 billion, up from $2.74 billion in the same month last year.

The value of cash returned home by migrant Filipinos was the largest in two months, or since July, when it reached $2.92 billion. The annual growth rate, however, has decreased from 4.3% in August.

Cash remittances increased 3.1% year on year to $23.825 billion in the first nine months of 2021, up from $23.117 billion in the same period the previous year. The BSP anticipates a 4% increase in remittances this year.

“Investors continued to invest in the Philippine market, notwithstanding the Fed’s (US Federal Reserve) comments on future rate hikes.” Locally, remittances remained high in September, with a 3.8% increase,” Regina Capital Development Corp. Luis A. Limlingan, Sales Director, stated.

Mercantile Securities Corporation According to Head Trader Jeff Radley C. See, sustained foreign buying boosted the PSEi. Net foreign buying fell to P522.90 million on Tuesday, down from P681.67 million the previous day.

“Investors are looking for signs that the Fed may halt its rate hikes,” Mr. See added.

Fed Vice Chair Lael Brainard stated on Monday that the central bank must continue raising interest rates to combat inflation, but at a slower pace.

This week, more Fed officials are slated to speak.

On Tuesday, the bulk of sectoral indicators closed higher. Holding companies rose 117.30 points, or 1.94%, to 6,153.86; mining and oil rose 142.40 points, or 1.48%, to 9,756.36; services rose 23.99 points, or 1.48%, to 1,636.29; industrials rose 129.48 points, or 1.4%, to 9,358.02; and financials rose 2.78 points, or 0.17%, to 1,626.58.

Meanwhile, real estate fell 16.52 points, or 0.58%, to 2,799.72.

Tuesday’s value turnover was P5.13 billion, with 725.68 million shares changing hands, down from P5.65 billion with 634.86 million issues traded on Monday.

Advancers outweighed decliners 102 to 83, with 49 stocks closing unchanged.

Mr. Mercado of China Bank Securities set the PSEi’s support at 6,200-6,380 and resistance at 6,500, while Mr. See of Mercantile Securities set it at 6,000-6,136 and resistance at 6,600-6,836.

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