PSE index nears 2024 peak on sustained momentum after BSP rate cut
Last week’s euphoria over the Bangko Sentral ng Pilipinas’ (BSP) first rate cut in almost four years spilled over to this week, with the bourse nearing its highest ever closing this year.
The benchmark Philippine Stock Exchange Index (PSEi) closed on Monday with a 0.62-percent climb, equivalent to 42.5 points, to 6,889.87.
At the last minute, the 6,900 level slipped from the bourse’s grasp, coming from an intraday high of 6,943.53, as investors remained cautious. This came after analysts warned that a sharp rise in the market could result in a sudden dip.
READ: Asian markets get week off to largely positive start
The PSEi last touched the 6,900 level on April 2, when it closed at 6,960.43. Its highest closing this year was on April 1 at 6,979.81.
Meanwhile, the broader All Shares Index gained 0.41 percent, or 15.03 points, to 3,706.45.
Article continues after this advertisementA total of 625.56 million shares worth P7.62 billion changed hands as foreigners made net purchases worth P1.39 billion, stock exchange data showed.
Article continues after this advertisementLuis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said investors “continued to buy into the market” after the local central bank’s rate cut last week.
Traders likewise priced in the A- credit sovereign rating recently given by Japan-based Rating and Investment Information Inc. as it signified economic growth, Limlingan said.
An A- credit rating indicates “strong ability” to repay debts. This is an improvement from the earlier BBB+ rating of the Philippine government.
Property firms continued to benefit from the monetary policy easing as these registered a 1.55-percent gain on Monday, buoyed by Zobel family-led Ayala Land Inc. (ALI), which was the top-traded stock as it climbed 3.63 percent to P34.30.
ALI was followed by International Container Terminal Services Inc., up 0.25 percent to P396; BDO Unibank Inc., up 3.74 percent to P147; Metropolitan Bank and Trust Co., up 0.07 to P70.05; and ACEN Corp., down 2.93 percent to P5.64 each.
Universal Robina Corp. was up 0.75 percent to P94.10; DigiPlus Interactive Corp., down 4.69 percent to P19.30; Jollibee Foods Corp., down 1.67 percent to P248; SM Investments Corp., down 0.59 percent to P925; and SM Prime Holdings Inc., up 0.49 percent to P30.65.
Losers edged out advancers, 104 to 94, while 54 companies closed unchanged. —Meg J. Adonis INQ
