Market bounces back, investors cheer Marcos’ SONA

MANILA, Philippines — The stock market bounced back after a sluggish week-opener buoyed by Wall Street gains and President Marcos’ latest State of the Nation Address.

The Philippine Stock Exchange index climbed by 0.61 percent or 41.07 points to close at 6,753.12 yesterday.

Also finishing in the win column was the broader All Shares index, which rose by 1.07 percent or 38.50 points to settle at 3,638.48.

“Philippine shares followed Wall Street’s positive sentiment, with technology stocks rebounding from last week’s sell-off. In the US, investor have been adjusting their assumptions now that President Joe Biden will not be seeking re-election, while local investors digested the latest SONA delivered by President Marcos,” Luis Limlingan of Regina Capital said.

Philstocks Financial research and engagement officer Mikhail Plopenio said the improvement of the country’s poverty incidence level to 15.5 percent in 2023 from 18 percent in 2021, was likewise cheered by many.

“The positive spillovers from Wall Street overnight amid optimism on US second quarter corporate results added a boost to the local bourse. Net foreign fund inflows amounting to P442.93 million also helped in the climb,” Plopenio said.

However, Plopenio said net market value turnover was quite tepid at P4 billion, lower than the year-to-date average of P4.95 billion.

Among the sectors, property suffered the biggest drop following President Marcos’ order to ban Philippine offshore gaming operators during his third SONA last Monday.

The financials sector was also in the red, slipping by 0.17 percent.

Holding firms and services, meanwhile, led the charge with increases of 1.66 percent and 1.52 percent, respectively.

Market breadth stayed negative as decliners crushed advancers, 93 to 67, while 74 issues were unchanged.