PH shares rally as Fed placates with steady rate hike promise
Philippine stocks were sharply higher as investors digested a batch of corporate earnings and as US Federal Reserve chair Jerome Powell signaled support for a less aggressive interest rate hike during their next policy meeting this month.
The latest development from the Fed sent Wall Street higher and sentiments spread to the Philippines, with the local benchmark index rising 1.15 percent, or 84.07 points, to 7.388.09 while the broader all-shares index was up 0.97 percent, or 37.68 points, to 3,918.42.
“Chair Powell said that he was inclined to propose and support a 25-basis point rate hike at the [Federal Open Market Committee] March meeting,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.
Meanwhile, PLDT said 2021 core profits rose 8 percent and it expected earnings to grow up to 9 percent to P33 billion in 2022.
Shortly after trading closed, billionaire Enrique Razon Jr.’s International Container Terminal Services Inc. (ICTSI) said profit last year surged 321 percent to $428.57 million.
ICTSI shares jumped over 4.5 percent while PLDT was up 4.57 percent on Thursday.
Article continues after this advertisementAll Philippine Stock Exchange subsectors rose, led by mining and oil, up 4.83 percent, followed by services, up 2.35 percent, holding firms, up 1.10 percent, property, up 1.05 percent, industrial, up 0.88 percent, and financials, up 0.21 percent.
Article continues after this advertisementA total of 1.82 billion shares valued at P8.25 billion changed hands, while foreigners were net buyers to the tune of P489.15 million.
A total of 121 companies gained while 76 declined and 41 closed unchanged.
ICTSI was the top traded company, as it closed up 4.59 percent to P228 per share.
It was followed by Semirara Mining and Power Corp., up 7.57 percent to P32.70; BDO Unibank Inc., flat at P131; SM Prime Holdings Inc., up 2.21 percent to P39.25; and Solar Philippines Nueva Ecija Corp., up 0.95 percent to P2.13 per share.
Other active names were PLDT Inc., up 4.57 percent to P1,830; SM Investments Corp., up 2.90 percent to P957; Bank of the Philippine Islands, up 0.36 percent to P98.50; Ayala Corp., down 1.34 percent to P848 and Nickel Asia Corp., up 3.95 percent to P8.15 per share.
