MANILA -The Philippine Stock Exchange index (PSEi) rebounded above 6,500 on Monday as bargain hunters provided buying support.
The PSEi rose 0.88 percent, or 56.94 points, to 6,507.78 while the broader All Shares index added 0.76 percent, or 26.31 points, to 3,473.92.
Service and industrial stocks outperformed the market while property slipped. A total of 578.13 million shares valued at P3.26 billion changed hands while foreigners were net sellers of an amount worth P400 million.
The PSEi lost more than 2.6 percent the past week even after government data showed inflation had cooled for six straight months.
“[D]espite waning price pressures, we still expect the [Bangko Sentral ng Pilipinas] to keep its policy rate as it is at 6.25 percent until after the [US Federal Reserve] begins its easing cycle. Our base case is the Fed cutting rates in [the second quarter of] 2024,” said Aris Dacanay, HSCB economist for Asean.
READ: BSP key rate seen staying longer at 6.25%
“For one, we still expect inflation to turn the corner again and accelerate in [the first quarter of 2024] due to the expiration of Executive Order 10, an order that temporarily reduced the tariff rates for rice, corn, pork and coal,” he said.
READ: Global price pressures threaten Philippine inflation downtrend
“Second, we think the Philippines has the least monetary policy freedom in Asean when it comes to diverging from the Fed. The economy’s wide current account deficits make it susceptible to capital outflows and abrupt changes in the exchange rate,” he added.
Data from the PSE showed BDO Unibank Inc. was the top traded stock as it closed flat at P141 per share. It was followed by SM Prime Holdings Inc., down 2.21 percent to P33.25; SM Investments Corp., down 0.77 percent to P901.50; International Container Terminal Services Inc., up 2.97 percent to P208; and Ayala Land Inc., up 1.06 percent to P28.70 per share.
Universal Robina Corp. was up 2.98 percent to P124.40; Ayala Corp., up 2.80 percent to P624; Bank of the Philippine Islands, down 0.51 percent to P116.40; Aboitiz Equity Ventures Inc., up 1.71 percent to P50.60; and ACEN Corp., down 1.45 percent to P5.42 per share. Overall, there were 97 advancers against 82 losers while 51 companies closed unchanged. INQ