STOCKS inched up on Monday amid thin trading volume and as investor sentiment improved following an order from President Ferdinand R. Marcos, Jr. to ease the import process for agricultural products.
The Philippine Stock Exchange index rose by 0.01% or 1.08 points to end at 6,444.08 on Monday, while the broader all shares went up by 0.12% or 4.16 points to close at 3,425.71.
“The local bourse inched up by 1.08 points (0.01%) to 6,444.08 after the strong sell-off last week,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message. “President Marcos’ directive to ease the im-portation process of agricultural products provided a boost to market sentiment. This change is anticipated to ease short-term supply issues, which in turn should help reduce inflation caused by supply shortages.”
Mr. Marcos ordered the Department of Agriculture (DA) to ease the importation process of agricultural products, including allowing industrial users to directly import sugar.
Administrative Order No. 20 signed on April 18 directed the DA, in coordination with the Departments of Finance and Trade, to “undertake measures to further streamline administrative procedures and policies on the importation of agricultural products and remove non-tariff barriers.”
Non-tariff barriers are policy measures that restrict trade such as quotas, import licensing systems, regulations and red tape, among others.
“Philippine shares started the week quietly on thin volume as the market awaits further updates on the geopolitical front,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan added in a Viber message.
“In the United States, on Wednesday, durable goods data is expected with a consensus estimate of 2.5%. Following that, on Thursday, the gross domestic product growth rate is anticipated to be released with an estimate of 2.5%. On Friday, two crucial indicators will be released namely core personal consumption expenditures with an estimated increase of 0.3%, and personal income and personal spending, both with estimated increases of 0.5% and 0.6%, respectively,” he added.
Value turnover dropped to P3.64 billion on Monday with 564.35 million shares changing hands from the P5.44 billion with 703.78 million issues traded on Friday.
Sectoral indices were mixed on Monday. Mining and oil rose by 3.09% or 254.53 points to 8,477.15; property climbed by 1.66% or 40.14 points to 2,458.37; and industrials gained by 0.28% or 23.87 points to end at 8,399.44.
Meanwhile, services fell by 0.66% or 12.16 points to 1,809.90; holding firms went down by 0.59% or 35.34 points to 5,917.02; and financials dropped by 0.06% or 1.33 points to close at 2,035.23.
Advancers outnumbered decliners, 96 versus 82, while 47 names ended unchanged.
Net foreign selling increased to P795.73 million on Monday from P651.52 million on Friday. — Revin Mikhael D. Ochave
