PH stocks continue rise over news of low policy rates
MANILA, Philippines — Local share prices ended on Monday, with another record close, although falling short by less than a point of its highest trading level in history, driven by optimism over the central bank’s move to keep policy rates at record lows.
Expectations that the Philippine economy grew faster than government expectations also fueled optimism among local investors, pushing the benchmark Philippine Stock Exchange Index (PSEi) to close at 6,192.42.
The index was up 0.4 percent or 24.78 points as the broader All-Shares index rose by a similar 0.43 percent. The PSEi fell short of its all-time intra-day high of 6,193.25 percent.
Brokerage firm 2TradeAsia said the rally was likely driven by the “possible second-wind reaction to the central bank’s latest status quo on interest rates.” In a separate note, Accord Capital attributed the rise to the Philippines’ economic outlook.
“The domestic economy is moving along well and there seems to be little debate to contest the promising outlook posited by both private and government estimates. The government sees 2013 to keep last year’s pace, pegging GDP target at between 6 and 7 percent,” Accord Capital said.
The services sector was the only counter in the red, losing 0.55 percent following the 1.28-percent decline of Philippine Long Distance Telephone Co.