BSP’s rate hike pitch props up PSEi

Philippine shares saw modest gains on Friday after the Bangko Sentral ng Pilipinas (BSP) signaled more aggressive rate hikes to temper inflation while the Philippine peso hovered near 17-year lows against the US dollar.

The benchmark Philippine Stock Exchange Index (PSEi) added 0.15 percent, or 9.5 points, to 6,361.82 while the broader All Shares index rose 0.16 percent, or 5.37 points, to 3,410.76.

BSP Governor Felipe Medalla said on Thursday they were prepared to raise the policy rate by half a percent during the next meeting in August. The Philippine peso broke past the P56 level against the dollar on July 7, then strengthened to P55.92 against the greenback yesterday.

All Philippine Stock Exchange (PSE) subsectors closed higher on Friday, save for holding firms and property.

Monde Nissin extended losses a day after several countries in the European Union ordered its instant noodle products recalled after health authorities detected a banned chemical substance.

A total of 538.3 million shares valued at P6.6 billion changed hands while foreign selling continued to the tune of P123.42 million.

Top traded stock

Ayala Land Inc. was the top traded stock on Friday as it shed 0.96 percent to P25.90 per share.

It was followed by BDO Unibank Inc., up 2.15 percent to P118.80; SM Prime Holdings Inc., down 0.94 percent to P36.90; SM Investments Corp., down 0.59 percent to P839; and Converge ICT Solutions Inc., up 2.83 percent to P21.80 per share.

Ayala Corp. dropped 1.68 percent to P643, followed by PLDT Inc., down 0.18 percent to P1,690; Universal Robina Corp., up 3.2 percent to P119.50; Metropolitan Bank & Trust Co., up 1.95 percent to P49.70; and International Container Terminal Services Inc., down 0.64 percent to P185 per share.

Overall, there were 92 advancers against 72 losers while 62 companies closed unchanged, PSE data showed.

—MIGUEL R. CAMUS
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