Dovish central bank perks up shares
Philippine shares continued their climb toward 6,600 on Tuesday, thanks to a dovish Bangko Sentral ng Pilipinas (BSP) again hinting at an interest rate cut.
By the closing bell, the benchmark Philippine Stock Exchange Index (PSEi) added 0.42 percent, or 27.23 points, to 6,556.66. Meanwhile, the broader All Shares Index rose by 0.39 percent, or 13.82 points, to close at 3,538.24.
A total of 757.81 million shares worth P6.74 billion changed hands, stock exchange data showed.
READ: PSEi pushes past 6,500 over US inflation thrill
The positive performance of the local bourse came on the heels of BSP Governor Eli Remolona Jr.’s latest pronouncement saying that the central bank would “not wait too long” to cut interest rates, as this could lead to “unnecessary” loss of economic output.
Mikhail Plopenio, researcher at Philstocks Financial Inc., said the rate cut prospect “seems to boost investors’ confidence,” especially since many traders had been waiting for it since the beginning of the year.
Article continues after this advertisementThe BSP had last cut rates in November 2020 when inflation eased to among its slowest amid the pandemic.
Article continues after this advertisementOn Tuesday, nearly all sectors were in the green, except banks and mining firms.
Tony Tan Caktiong-led fast-food giant Jollibee Foods Corp. was the top-traded stock as it shed 0.94 percent to P230.80 per share.
It was followed by BDO Unibank Inc., down 2.83 percent to P140.90; Ayala Land Inc., up 0.68 percent to P29.40; International Container Terminal Services Inc., up 1.41 percent to P360; and SM Investments Corp., up 1.42 percent to P857 each.
SM Prime Holdings Inc. was up 1.05 percent to P28.80; Ayala Corp., down 0.26 percent to P566.50; Bank of the Philippine Islands, up 0.41 percent to P123; Metropolitan Bank and Trust Co., up 0.84 percent to P65.65; and Universal Robina Corp., up 3.22 percent to P115.50.
There were 97 gainers against 90 losers, while 56 companies were unchanged. —Meg J. Adonis INQ
