PSE index closes flat

The local stock barometer ended flat on Thursday ahead of the monetary setting of the Bangko Sentral ng Pilipinas (BSP) later in the day.

The main-share Philippine Stock Exchange index (PSEi) added 0.24 point or 0.003 percent to close at 7,896.48.

As expected by market consensus, the BSP reduced its overnight borrowing rate by 25 basis points to 4 percent yesterday.

On the other hand, the reserve requirement ratio was maintained at current levels.

“With the latest cut, BSP still has a significant policy space due to a 175-basis points total rate hike from last year, giving the central bank enough policy leeway to support the economy for the rest of 2019 and beyond, should government spending fail to revive growth,” Security Bank economist Robert Dan Roces said in a research note.

The economist believes that government spending will carry the heavier burden of driving Philippine economic performance this year.

“Growth of 6 percent for the second half of 2019 is doable but increasingly challenging,” he said.

The index was boosted by the financial, services, mining/oil and property counters.

On the other hand, the industrial and holding firm counters slipped.

Value turnover for the day amounted to P5.69 billion. Local investors made up for the net foreign selling of P472.88 million for the day.

There were 107 advancers that edged out 80 decliners, while 57 stocks were unchanged.

BDO led the PSEi higher with its 2.24-percent gain, while Megaworld added 1.48 percent.

Ayala Land, Globe Telecom, Metrobank, JG Summit and GT Capital also firmed up.

One notable gainer outside the PSEi was A. Brown Co., which surged by 8.14 percent.

On the other hand, ICTSI and Aboitiz Power both lost over 1 percent.

Ayala Corp., URC, BPI, SM Prime, Security Bank and SM Investments also slipped.

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