PH shares rally back to 7,800
The local stock barometer rallied to the 7,800 level on Wednesday as investors took their cue from upbeat US and regional markets and the latest stream of local corporate earnings.
The main-share Philippine Stock Exchange index (PSEi) racked up 125.61 points or 1.63 percent to close at 7,851.46 ahead of the monetary setting meeting of the inflation-targeting Bangko Sentral ng Pilipinas (BSP) on Thursday.
Although the market was unnerved by the Philippines’ higher-than-expected 5.7 percent inflation rate in July, investors widely expect the BSP to curb inflation and inflation expectations with a 50 basis point interest rate hike on Thursday.
“On the bright side, the BSP remained confident that inflation will peak this quarter,” local stock brokerage Papa Securities said.
Papa Securities said all eyes were now on the BSP, with the market anticipating a 50 basis point rate hike.
Jonathan Ravelas, chief strategist at BDO Unibank, said investors were pricing in the stream of second quarter local corporate earnings reports while the upbeat trading on Wall Street overnight brought good tidings.
Foreigners were net buyers in the local stock market on Wednesday, resulting in a net inflow of P325.87 million.
“The profit-taking has ended,” declared Joseph Roxas, president of Eagle Equities Inc.
All counters ended higher, led by services, which surged by 3.19 percent, while the industrial counter added 2.07 percent.
The holding firm and property counters advanced by 1.3 percent and 1.9 percent, respectively.
Value turnover for the day was relatively heavy at P8.64 billion.
There were 116 advancers that edged out 75 decliners while 52 stocks were unchanged.
Investors racked up shares of Globe Telecom, which rallied by 8.64 percent, after announcing that core profit in the first half rose by 29 percent to P10.3 billion.
ICTSI rallied by 7.15 percent while Megaworld and URC both gained over 3 percent.
Investors also picked up shares of SM Prime, the day’s most actively traded stock, which rose by 2.9 percent.
