PHILIPPINE SHARES climbed on the first trading day of 2025 on stronger manufacturing activity in December and as investors hunted for bargains.
The benchmark Philippine Stock Exchange index rose by 0.33% or 21.60 points to close at 6,550.39 on Thursday, while the broader all shares index went up by 0.17% or 6.59 points to 3,755.10.
Philippine financial markets were closed for holidays on Dec. 30, Dec. 31, and Jan. 1.
The local bourse ended higher following the release of data showing that Philippine factory activity in December expanded at its fastest pace since November 2017, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
The headline S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) went up to 54.3 last month from 53.8 in November.
This marked the 16th straight month that the PMI expanded and was also the strongest improvement in operating conditions since November 2017.
A PMI reading above the 50 mark indicates expansion, while a reading below 50 shows a deterioriation in operating conditions.
“Both output and new orders rose sharply and at broadly similar rates, marking the strongest growth in each since April 2022,” S&P Global said.
“The market closed its first trading day of the year on a positive note on the back of last-minute bargain hunting,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“Foreign transactions posted net inflows amounting to P217.72 million… Trading was still lethargic, however, with net value turnover at P2.8 billion, below last year’s average of P5.15 billion.”
Net foreign buying stood at P217.72 million on Thursday, a turnaround from the P112.76 million in net foreign selling recorded on Dec. 27.
Meanwhile, value turnover dropped to P3.24 billion on Thursday with 1.11 billion issues traded from the P4.19 billion with 1.18 billion shares that changed hands on Dec. 27.
“Philippine shares started on a positive note, showing noticeable gains as the market gears up for a full year ahead,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Majority of sectoral indices closed lower on Thursday. Mining and oil declined by 1.73% or 136.09 points to 7,693.57; holding firms dropped by 0.32% or 18.47 points to 5,621.79; industrials retreated by 0.18% or 17.10 points to 9,291.05; and property inched down by 0.03% or 0.78 point to 2,376.45.
Meanwhile, services rose by 1.68% or 35.11 points to 2,116.83 and financials climbed by 0.83% or 18.07 points to end at 2,175.61.
“International Container Terminal Services, Inc. was the top index gainer, climbing 3.37% to P399. Nickel Asia Corp. was the worst index performer, dropping 4.30% to P3.34,” Mr. Tantiangco said.
Decliners narrowly beat advancers, 97 versus 94, while 47 names closed unchanged. — Revin Mikhael D. Ochave
