PSEi rises on stimulus bets

THE LOCAL stock barometer firmed up on Friday alongside mostly buoyant regional markets as investors welcomed cues from major central banks to counter shockwaves from “Brexit” or Britain’s decision to exit the European Union.

Swinging back to positive territory after Thursday’s roller coaster ride, the main-share Philippine Stock Exchange index gained 34.10 points or 0.44 percent to close at 7,830.35.

In most stock markets across the region, investors tool heart from the Bank of England’s hint of an interest rate cut ahead. The European Central Bank is likewise seen considering to ease rules on bond purchases to ensure sufficient financial liquidity.

These accommodative policies are seen to counter the economic slowdown that Britain and EU are expected to face once Britain leaves the EU, which is expected to happen in about two years.

At the local market, the day’s gains were supported by modest gains eked out by the financial, industrial, holding firm, mining/oil and property counters. Only the services counter ended lower.

Value turnover for the day amounted to P11.16 billion. There were 100 advancers that edged out
83 decliners while 51 stocks were unchanged.

Foreign investors continued to be in a net buying position resulting in P1.96 billion net inflows to the stock market for the day.

Shares of SMIC rose by 2.38 percent while SM Prime, Jollibee, GTCAP, BDO, Meralco and BPI all gained over 1 percent. ALI also contributed to the day’s gains.

Outside of the PSEi, the notable gainers included NOW, which surged by 11.72 percent while retailer MRSGI rose by 2.48 percent.

On the other hand, MPI fell by 2.87 percent while Megaworld and Metrobank both slipped by over 1 percent. URC, AC and AP also declined.

Meanwhile, newly listed Golden Haven succumbed to profit-taking after its stellar rise in the last two days, pulling back by 5.42 percent. Other decliners outside the PSEi were FLI (-1 percent) and Security Bank (-0.47 percent).

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