Stocks test all-time highs

A+
A
A-

Local share prices tested record highs at the end of the week following the central bank’s decision to cut yields on special deposit accounts (SDA) as part of efforts to encourage banks to boost lending.

The benchmark Philippine Stock Exchange Index (PSEi) rose for a second straight day to close at 6,167.64, 50.37 points or 0.82 percent ahead of the previous close. This was just a few points behind the index’s highest close of 6,171.70.

All sub-indices were in the green, led by financials (2.22 percent), driving up the broader all-shares index by 0.71 percent.

The Bangko Sentral ng Pilipinas’ policy-making Monetary Board on Thursday decided to keep rates for overnight borrowing and lending at 3.5 percent and 5.5 percent, respectively.

The interest rate on SDAs, in which banks have placements estimated at P1.7 trillion, was slashed to just 3 percent across all maturities. Previously, the SDA rates were set at a premium on top of the overnight borrowing rate.

“Some fund managers respond favorably to local monetary authorities’ move to retain benchmark policy rates during their latest meeting,” brokerage firm 2TradeAsia said Friday.

Local banks posted healthy gains following the SDA rate cut, led by Bank of the Philippine Islands (5 percent), Metropolitan Bank and Trust Co. (1.53 percent) and Philippine National Bank (2.06 percent).

Total volume reached 2.62 billion shares changing hands for P8.89 billion. The day’s 95 advancers led the 69 advancers, while 45 other traded issues were unchanged. Paolo G. Montecillo

Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.

  • investor888

    At Current price of P 99/share for PNB,  Price to Book value is only 1.77 with a 14% Return on Equity at 3rd qtr This is a big discount considering that it has notyet include the merger into the price,   On a stand alone. it can have a price to book value of 2 or above.  

To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.

Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:

c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City,Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94

editors' picks

advertisement
advertisement