The Philippine Stock Exchange Index (PSEi) rallied above the 6,800 level on Tuesday ahead of a potential rate hike decision at the next policy meeting of the Bangko Sentral ng Pilipinas (BSP) on Aug. 18.
By the closing bell, the PSEi rose 1.67 percent, or 112.8 points, to 6,850.64 while the broader All Shares Index added 1.23 percent, or 44.21 points, to 3,625.08.
The BSP is widely expected to deliver another interest rate increase this week to cool inflationary pressures that have prevailed for most of the year.
The benchmark interest rate is expected to rise by another 75 basis points to 4 percent, a new Bloomberg survey of economists showed.
Nevertheless, all PSE indices pushed higher on Tuesday. Financials and holding firms led gainers after rising 2.78 percent and 1.96 percent, respectively.
Luis Gerardo Limlingan, head of sales at stock brokerage house Regina Capital Development, attributed gains on Tuesday to funds pivoting to “alternatives after the weaker view of China.”
The previous day, China’s central bank unexpectedly cut a key policy interest rate to shore up growth.
Meanwhile, a total of 967.13 million shares valued at P8.89 billion changed hands at the PSE.
Emperador Inc. was the top traded stock as it climbed 3.16 percent to P19.56 per share.
It was followed by Ayala Land Inc., up 3.78 percent to P30.20; SM Investments Corp., up 2.33 percent to P880; BDO Unibank Inc., up 4.5 percent to P125.40; and SM Prime Holdings Inc., up 0.13 percent to P38.15 per share.
Security Bank rose 5.75 percent to P92; and Ayala Corp., was up 2.67 percent to P770.
There were 111 advancers against 91 decliners while 35 companies closed unchanged. INQ