PSEi firms up at 7,180.34 despite sluggish regional markets

AFP FILE PHOTO

MANILA, Philippines—The local stock barometer firmed up for the first time in five days on Tuesday even as regional markets remained sluggish ahead of a crucial US Federal Reserve policy meeting.

The Philippine Stock Exchange index added 19.07 points or 0.27 percent to close at 7,180.34.

The gains were led by the mining/oil counter (+1.23 percent). Only the holding firm ended lower for the day.

Value turnover amounted to P6.72 billion. There were 101 advancers that beat 70 decliners while 52 stocks were unchanged.

Dealers said the slump in the last few days had encouraged some selective buying even as the market was still digesting the Bangko Sentral ng Pilipinas’ twin monetary tightening moves.

The gains were led by Bloomberry (+3 percent) and DMCI (+2.25 percent) while AP and BPI both gained by over 1 percent. PLDT, ALI, BDO, AC, EDC and Metrobank also contributed to the day’s gains.

Outside of PSEi stocks, APC surged by 11.7 percent on speculation of backdoor-listing by the SM group’s energy assets. Security Bank and Puregold also both rose by over 2 percent.

Melco trekked higher by 0.78 percent ahead of the opening of City of Dreams Manila before yearend.

On the other hand, URC fell by 1.2 percent while SMIC, AGI and Globe also declined.

“This week, the market may continue to digest the impact of the BSP’s rate hike – which has been the most aggressive to date. Fund flows into and out of equities continue to be monitored as this has been the primary driver of share prices as of late,” said First Metro Securities Brokers Corp. analysts Ghia Yuson and equity sales associate Bruce Lopez in a research note.

“Tight monetary policy may induce outflow from equities and into other asset classes, such as fixed income securities. Expect sideward trading with a downside bias for this week,” the research note said.