Sona hardly boosts market; all eyes on fed
MANILA -The benchmark Philippine Stock Exchange index (PSEi) pushed higher on Tuesday as investors weighed President Marcos’ comments on inflation and agriculture during his second State of the Nation Address (Sona) while anticipating a potential interest rate hike by the US Federal Reserve on Wednesday.
The PSEi rose 0.45 percent, or 29.86 points, to 6,661.11 while the broader All Shares index added 0.39 percent, or 13.67 points, to 3,540.38.
During the Sona, the President discussed pressing issues such as inflation and the need for food security. Some market observers, however, said the speech lacked details on implementation given external risks such as the Russian invasion of Ukraine and the El Niño weather phenomenon.
“Philippine shares notched a winning session ahead of the Fed’s policy decision later tonight. The market widely expects the Fed to raise rates by 25 basis points.
Throughout the week, traders await the latest data on the personal consumption expenditures index, the Fed’s preferred inflation gauge,” said Luis Gerardo Limlingan, head of sales at stock brokerage Regina Capital Development.
PSE volumes on Tuesday were marginally higher as 616.12 millions shares valued at P4.34 billion changed hands while foreigners were net sellers amounting to P215.77 million. All PSE subsectors advanced during the session as mining and oil took the lead with a gain of 1.01 percent.
Bank of the Philippine Islands was the top traded stock as it rose 2.87 percent to P118.30 per share.
It was followed by BDO Unibank Inc., down 1.67 percent to P147.50; Jollibee Foods Corp., up 0.7 percent to P259.80; PLDT Inc., up 1.46 percent to P1,319 and Metro Pacific Investments Corp., down 0.2 percent to P4.90 per share.
Ayala Land Inc. was down 0.18 percent to P27.45; SM Investments Corp., up 0.11 percent to P924; SM Prime Holdings Inc., up 0.6 percent to P33.50; Universal Robina Corp., down 1.98 percent to P128.50; and Metropolitan Bank & Trust Co., up 3.21 percent to P59.45 per share. Winners and losers were evenly matched, 90 to 90.
