PHILIPPINE SHARES rebounded on Wednesday, with the main benchmark testing the 6,400 mark intraday, after the Bangko Sentral ng Pilipinas (BSP) chief said they are unlikely to make aggressive policy moves even as inflation risks persist.
The Philippine Stock Exchange index (PSEi) went up by 0.77% or 49.01 points to close at 6,353.04, while the broader all shares index rose 0.59% or 20.30 points to end 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, the majority of which came in line 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 in the near term.”
“The local bourse ended higher as investors welcomed the BSP’s view that the likelihood of more aggressive monetary tightening this year remains low, supporting risk appetite,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said. Optimism over a potential 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 chance” of more aggressive monetary policy tightening this year, despite renewed volatility that could 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 will 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 previous day’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 3,437.69; 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 8,355.48.
Meanwhile, mining and oil declined by 0.72% or 116.89 points to 15,967.16.
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 changed hands on Tuesday.
Net foreign buying rose to P657.58 billion from P196.45 million in the previous session. — Sheldeen Joy Talavera
