Stock market cheers rise in remittances to 3-month high

Share prices on the Philippine Stock Exchange rebounded on Wednesday as the market cheered reports that remittances rose to a three-month high in October, boosting investor confidence that the economy is gradually recovering.

The bellwether PSEi gained 71.97 points or 1.00% to 7,299.70 at the closing bell. The broader All Shares increased by 29.44 points or 0.68% to 4,350.45.

“The sentiment may have improved after the central bank (BSP) reported that personal remittances from abroad for the month October have grown from the same month last year, which shows a return to normalcy after all the economic chaos the pandemic has caused this year,” AAA Equities head of research Chris Mangun said.

Data released by the Bangko Sentral ng Pilipinas showed that cash remittances—money transfers coursed through banks—rose 2.9% to $2.747 billion in October from $2.671 billion the same month last year, and from $2.601 billion in September. 

Meanwhile, personal remittances—the sum of transfers sent in cash or in-kind via informal channels—grew 2.5% to $3.044 billion from $2.969 billion last year, and $2.888 billion in September.

The latest figures are three-month highs since July, when cash remittances were recorded at $2.783 billion and personal remittances at $3.085 billion.

More than 117.64 billion shares valued at P9.31 billion, changed hands. Advancers led decliners, 133 to 90, and 47 issues were unchanged. — BM, GMA News