The PSE market index (PSEI) managed to break above 7000 level today and close at 1.09% gain, as optimism towards the slowing Covid19 cases for the past few days slowly drop down. It was the first time that lower than 10k cases was recorded yesterday. There was also some good news on slowdown of inflation to 4.8% for the month of September.

The index managed to close at 7057, first time again since July this year, but still got net foreign selling at -356.04Million.

For the Blue chip Index Globe telecom (9.51%) led the index sector together with continues movement from Robinsons Retail Holdings (RRHI, 4.98%) and Converge ICT (CNVRG, 4.76%)

1GLO 9.51%

2RRHI 4.98%

3CNVRG 4.76%

4AP 4.61%

5ACEN 3.68%

6SMPH 3.05%

7GTCAP 2.76%

8ALI 2.30%

9BLOOM 2.21%

10SMC 2.14%

11JGS 1.89%

12BDO 1.78%

For the index sector services and property led the market with all indexes going to Green positions.

Philippine Inflation Eases to 4.8%

The Philippine inflation data could have added positive sentiment to the Market. This months inflation rate at 4.8% is much lower as compared to last month at 4.9%. According to reports this was due to slower transport inflation results at 5.2%. This current level for September is however still outside the governments target of 2-4%. The global prices for Oil products is threatening this value as the country starts to open up as demand is slowly increasing.

The PSE market managed to close on positive side closing at 0.29% due to buying on the pre-closing period. It stayed closer to yesterdays position. The market could be pricing in the declining covid cases and the continued arrival of procured covid19 vaccines.

The initial weakness during the opening could have been due to the effect of the drop in the US indexes yesterday as the Nasdaq index dropped by more than 2%. Currently futures are pointing to the positive side. Meanwhile due to rising global oil prices, Oil related stocks like Petron Corporation and Shell Philippines led the market movements.

The index close at 6,981.24 with a net foreign selling of -709.3Million. The net foreign selling continued for a few days now.

For the Blue chip stocks, Robinsons Retail holdings (5.34%) and Converge ICT (5.0%) continues its gain streak ang led the Blue chips group

1RRHI 5.34%

2CNVRG 5.00%

3GLO 3.80%

4AEV 2.35%

5JFC 2.32%

6RLC 1.12%

7MER 1.03%

8SM 1.01%

9BLOOM 0.69%

10SECB 0.56%

11ACEN 0.34%

12FGEN 0.31%

13AGI 0.19%

For the index sector, Services led the upward movement

Oil Stocks Rises

Oil related stocks breakout from their consolidation prices as investors tries to digest the surging demand of oil products due to high demand coming from countries emerging from the pandemic levels. There is also lack of additional supply from OPEC and the expected spending and activities for the fourth quarter could be the catalyst later for these stocks.

PCOR 3.39 +7.96%

SHLPH 20.00 +3.09%

PNX 11.96 +0.17%