Philippine stocks closed marginally higher on Tuesday, with the benchmark index gaining 0.07% as the services sector outperformed amid continued foreign selling pressure that reached 153.3 million pesos.
The Philippine Stock Exchange Index (PSEi) ended at 6,353.63 points, up 4.98 points from the previous session, after trading in a narrow range between 6,334.82 and 6,375.38.
Sector Performance
The services sector led gains, rising 0.94% or 20.95 points to 2,233.34, driven by strong performances in telecommunications and gaming stocks. Property stocks also advanced 1.02%, while the mining and oil sector gained 0.92%.
However, the financial sector declined 1.19%, weighed down by weakness in major banking stocks. BDO Unibank (BDO.PS) closed flat at 144 pesos despite heavy trading volume of 1.64 million shares, while Bank of the Philippine Islands (BPI.PS) fell to 121.5 pesos.
Individual Stock Movers
Gainers:
– Digiplus (PLUS.PS) surged to 24.5 pesos with massive volume of 20 million shares, generating 488 million pesos in value
– International Container Terminal Services (ICT.PS)** rose to 460 pesos with strong foreign buying interest
– SP New Energy (SPNEC.PS)** gained to 1.51 pesos on heavy volume of 143 million shares
Losers:
– Ayala Land (ALI.PS) declined to 26.9 pesos despite active trading
– SM Prime Holdings (SMPH.PS) fell to 24.4 pesos
– Jollibee Foods (JFC.PS) dropped to 219 pesos amid significant foreign selling
Trading Activity
Total turnover reached 5.67 billion pesos across 1.28 billion shares, with 246 issues traded. Market breadth was slightly positive with 93 advancers versus 86 decliners.
Block sales totaled 1.11 billion pesos, led by major transactions in Ayala Land (74.7 million pesos) and SM Prime Holdings (47.7 million pesos).
Foreign investors continued their selling streak, with net outflows of 153.3 million pesos. Total foreign participation reached 5.24 billion pesos, representing significant market involvement despite the net selling pressure.
Foreign selling was concentrated in blue-chip stocks including Jollibee Foods (71.1 million pesos net selling) and BDO Unibank (67.6 million pesos net selling), while some property and utility stocks saw foreign buying interest.
Mixed Sectoral Performance Reflects Cautious Sentiment
The narrow trading range and mixed sectoral performance suggest investors remain cautious, likely awaiting clearer economic signals and corporate earnings guidance.
The continued foreign selling pressure, now extending for several sessions, indicates potential concerns about regional market conditions or profit-taking activities.
The services sector’s outperformance, particularly in telecommunications and gaming, reflects strong domestic demand and recovery in consumer-facing businesses.
The sector’s 0.94% gain contrasts sharply with regional weakness in financial services.
Despite the overall property sector gain of 1.02%, individual performances varied significantly.
While some REITs and developers posted gains, premium developers faced selling pressure, suggesting a flight to value within the sector.
The 1.19% decline in financials, led by major banks, may reflect concerns about net interest margins and credit quality amid an uncertain interest rate environment.
Heavy foreign selling in banking stocks suggests institutional repositioning.
Market participants will likely focus on upcoming corporate earnings releases and any policy signals from the central bank regarding interest rates.
The sustained foreign selling pressure warrants monitoring, as it could impact market liquidity and sentiment in the near term.
The narrow trading range suggests consolidation, with the market testing support around 6,335 and resistance near 6,375. A break above 6,400 could signal renewed bullish momentum, while a drop below 6,300 might trigger further weakness.
Business News Asia
