PSEi firms up ahead of Fed meet

The Philippine Stock Exchange Index (PSEi) ended a five-day losing streak on Tuesday ahead of a US Federal Reserve meeting that would likely continue an aggressive monetary tightening to slow price increases.

The benchmark measure added 0.17 percent, or 11.04 points, to 6,448.46 by the closing bell, while the broader All Shares Index rose 0.2 percent, or 6.74 points, to finish at 3,432.74.

Volume remained thin, with 401.19 million shares valued at P4.75 billion changing hands, while net foreign selling eased to nearly P192 million, stock exchange data showed.

“Philippine shares ended the day with a modest rebound ahead of another rate hike from the Fed,” Luis Gerardo Limlingan, head of sales at stock brokerage house Regina Capital Development, said in a note to investors.

“The street bets that the central bank will adjust the benchmark rate by 75 basis points on Wednesday,” he said.

Meanwhile, Moody’s Analytics was expecting that the Bangko Sentral ng Pilipinas (BSP) would also maintain its aggressive fight against soaring inflation, Limlingan added.

The BSP is holding a separate interest rate setting on Thursday.

PSE subsectors were mostly higher, led by financials and mining and oil counters.

—Miguel R. Camus INQ

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