PSEi back to 7,600 as US Fed signals gradual rate hike

THE LOCAL stock barometer climbed back to the 7,600 levels on Thursday as investors were relieved over the US Federal Reserve’s pronouncement of a “gradual” rise in interest rates.

The main-share Philippine Stock Exchange index gained 70.55 points or 0.94 percent to close at 7,606.86. This was after the US Fed, at the end of a two-day policy meeting, signalled a slow pace of interest rate tightening. Across the region, trading sentiment was mixed.

At the local market, the day’s upswing was led by the industrial, holding firm as well as the interest rate-sensitive property counter. All these sub-indices rose by over 1 percent while the financial counter eked out a more modest gain.

The services and mining/oil counters, on the other hand, ended in the red.

Value turnover for the day was thin at P6.9 billion. Market breadth turned positive, with 89 advancers beating 71 decliners while 42 stocks were unchanged.

Local investors were the ones still keeping the index afloat as the day was marked by about P1.14 billion in net foreign selling.

Megaworld led the PSEi’s rise, gaining 3.53 percent while URC, AC, JG Summit and AGI all advanced by over 2 percent. BDO and EDC were up by over 1 percent.

GTCAP, SM Prime, SMIC, Metrobank and BPI also contributed modest gains.

On the other hand, there was profit-taking on Globe, which fell by 0.61 percent and was the most actively traded company. Telecom peer PLDT, an index heavyweight, was also down by 0.28 percent. Jollibee and DMCI shares also slipped.