The PSE market just had one of its good move in the day but this uplift in the index by 2.15% was mainly due to two heavy weights on the index, Globe Telecom and PLDT.

The index was initially just above from its previous close during the 1st half of the day and started to pick up its movement when Globe Telecom started up surging from 7% then to 14.04% at the close

The index close and up to 6,822.15 level. Net foreign buying is also up with heavy buying at the close, net buying ended with 813,994,108. This is a good volume considering the few days where buying from the foreigners is just past 100Million.

Top gainers include Globe telecom, PLDT and SMPH.

1 GLO14.04%

2 TEL7.77%

3 SMPH4.04%

4 JGS3.76%

5 AC3.64%

6 AP3.37%

7 AEV2.72%

8 JFC2.55%

9 SM2.33%

10 RRHI1.68%

11 ICT1.52%

12 MEG1.38%

Service sector led the group with 3.51% upward move while mining still bucking from the trend with a -0.12% loss for the day.

Globe Telecom surge most for the day signals a bullish momentum for the Philippines stock together with the first big foreign buying near the end of August. Globe have a net foreign buying of +695,380,120 for the day. Globe telecom previously disclosed it had 13% up in profits for the 1st half of 2021 with 13Billion in value.

The recorded increase in profits for the quarter was attributed due to CREATE law impact and corporate recovery. For its increase in profits it was noticeable also that the data revenues currently is up 70%

Its home broadband segment have grown to 14.5 Billion with a 16% growth as most people are using internet due to work at home conditions brought by the pandemic

According to Globe president and chief executive officer Ernest Cu;

“We are pleased to report strong financial and operating results for the first half of 2021, with healthy balance sheet and cash flows despite the re-imposition of stricter lockdowns during the second quarter,”

Globe e-sports and online games are making a buzz as well, in particular is its hosting of League of Legend games reaching 90% of its top line. GCASH initial public offering remains to be seen as no definite timeline was release.

The market loosed its ground today as the index is down by -1.27 % due to profit taking. Index was up 4 days in a row and what could have been the 5th day ended in red. This is after the government announced that the remaining days of August will shift the quarantine classification from ECQ to the less business restrictive MECQ.

Last night Spokesperson Harry Roque has announced that the quarantine classification is M-ECQ for Metro Manila.  IATF placed Metro Manila under modified ECQ (M-ECQ) from 21-31 Aug.  Spokesman Roque said LGUs may still impose granular lockdowns covering smaller areas within a city or town.

On the charts, Index closed to 6,633.2 with a net foreign selling value of -175Million, indicating a short pull back for the market

On the other side, S&P downgraded its Philippine economic outlook for the year 2021 from 5-6% projection last month to a notch lower at around 4-5%. This is on top of the recently implemented Enhanced Community Quarantines and typhoons that visited the country for the past few months.

However on a weekly basis the market is continuing its reversal direction as the latest reports for the first half of the year for most of the companies showed optimistic results coupled with the second quarterly GDP of 11.8% signified that the Philippines has exited from the recession as compared to last year performance.

S&P is expecting better growth for the year 2023 (7.4%) and 2024 (7.3%) which is almost similar to government projections of 6-8%

Asian indexes showing mixed reactions but major indexes like Japan and China are in deep red