PHILIPPINE SHARES rebounded on Wednesday, with the primary benchmark testing the 6,400 mark intraday, after the Bangko Sentral ng Pilipinas (BSP) chief said they’re unlikely to make aggressive policy moves at the same time as inflation risks persist.
The Philippine Stock Exchange index (PSEi) went up by 0.77% or 49.01 points to shut at 6,353.04, while the broader all shares index rose 0.59% or 20.30 points to finish at 3,447.34.
The PSEi opened Wednesday’s session at 6,341.98, up from Tuesday’s finish of 6,304.03. It climbed to a high of 6,436.11 intraday but trimmed its gains before the closing bell.
“Investors reacted positively to the BSP’s comments on its measured monetary policy stance and digested a wave of corporate earnings releases, nearly all of which got here consistent with or ahead of expectations,” Unicapital Securities, Inc. Research Head Wendy B. Estacio-Cruz said. “Any confirmation of a gradual easing path, coupled with resilient corporate earnings, could provide further support for the PSEi within the near term.”
“The local bourse ended higher as investors welcomed the BSP’s view that the likelihood of more aggressive monetary tightening this yr stays low, supporting risk appetite,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said. Optimism over a possible second-half economic recovery further underpinned market sentiment despite lingering external risks.”
BSP Governor Eli M. Remolona, Jr. said on Tuesday that he sees only a “small probability” of more aggressive monetary policy tightening this yr, despite renewed volatility that might stoke inflation anew and expectations of a second-half economic recovery.
In June, the Monetary Board hiked its benchmark borrowing rate by 25 basis points for a second straight meeting, bringing it to a near one-year high of 4.75%.
It’ll hold its next rate-setting meeting on Aug. 27.
Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco added that the market posted gains on bargain hunting following the day before today’s drop.
“Bargain hunting in blue-chip stocks ahead of the second-quarter earnings season also lifted the benchmark index,” Mr. Limlingan likewise said.
Most sectoral indices closed higher. Holdings firms rose by 2.72% or 120.44 points to 4,542.81; property increased by 1.45% or 27.78 points to 1,937.72; services went up by 0.05% or 1.78 points to three,437.69; financials inched up by 0.17% or 3.45 points to 1,932.14; and industrials climbed by 0.19% or 16.05 points to eight,355.48.
Meanwhile, mining and oil declined by 0.72% or 116.89 points to fifteen,967.16.
Advancers outnumbered decliners, 117 to 75, while 56 names were unchanged.
Value turnover increased to P7.44 billion on Wednesday with 494.98 million shares traded from the P6.67 billion with 790.17 million issues that modified hands on Tuesday.
Net foreign buying rose to P657.58 billion from P196.45 million within the previous session. — Sheldeen Joy Talavera