Stock price index ends slightly higher ahead of Fed meeting

The local stock barometer firmed up yesterday ahead of the US Federal Reserve’s policy decision.

Reversing losses in early trade, the Philippine Stock Exchange index (PSEi) ended 48.12 points or 0.61-percent higher to close at 7,966.01. Across the region, stock markets were mixed ahead of the US monetary policy announcement.

“Philippine markets traded in an upward bias as it awaited the outcome from the FOMC (Federal Open Market Commitee (FMOC). The two-day Federal Open Market Committee meeting (June 13-14) will wrap up later with a news conference hosted by Fed Chair Janet Yellen,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.

“The Fed has been confronted recently with softer inflation data and only scattered evidence of an expected re-acceleration of activity. With this, market observers are nearly unanimous in the view that the Fed funds rate will be raised, with a nearly 100-percent chance of an interest-rate increase,” he said.

The day’s gains were led by the services counter, which rose by 1.23 percent. Other sectors were modestly higher. Only the mining/oil counter ended lower.

Value turnover was heavy at P18.25 billion, bloated by a P11.6-billion block sale of Meralco. A unit of PLDT sold its remaining stake in Meralco to Metro Pacific Investments to focus on core businesses and pare down debt.

PLDT rose by 2.97 percent as analysts deemed the transaction beneficial to the telecom firm.

There were 97 advancers that edged out 85 decliners while 50 stocks were unchanged.

Aside from PLDT, DMCI and JG Summit also gained more than 2 percent yesterday. Metrobank, Megaworld, Globe and URC were all up by more than 1 percent.

SM Prime, SM Investments, Ayala Corp., BDO and BPI also contributed to the day’s gains.

On the other hand, Meralco—the day’s most actively traded stock—fell by 3.59 percent as MPIC bought additional shares in the utility from PLDT at a discount.

GT Capital lost 1.61 percent while Ayala Land, ICTSI, Metro Pacific and Security Bank ended lower. Bloomberry fell by another 1.45 percent.