PSEi flirts with 7,000 mark on dovish bets
Energy among traders remained high on Tuesday on expectations that the Bangko Sentral ng Pilipinas (BSP) would cut interest rates twice more this year. The index retested but again failed to clinch the 7,000 level.
By the closing bell, the benchmark Philippine Stock Exchange Index (PSEi) added 0.8 percent, or 54.89 points, to 6,944.76.Meanwhile, the broader All Shares Index climbed 0.61 percent, or 22.64 points, to close at 3,729.09.A total of 673.34 million shares worth P8.08 billion changed hands as foreigners made net purchases worth P2.06 billion, stock exchange data showed.
The index came from an intraday high of 7,005.27 as eager investors bought more stocks, mostly banks, early in the day before falling back to 6,900. The PSEi has not closed above 7,000 since Feb. 1, 2023.
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Banks, which posted a 2.54-percent surge, are expected to benefit the most from the BSP’s 25-basis-point interest rate cut, as the decline in borrowing costs is expected to boost loan demand.
Japhet Tantiangco, research manager at Philstocks Financial Inc., said expectations that the BSP would further ease its monetary policy had helped lift the bourse.
Article continues after this advertisementServices-focused firms also posted a gain of 2.14 percent on Tuesday, buoyed by Razon-led International Container Terminal Services Inc., which was the top-traded stock as it surged by 4.04 percent to P412 each.
Article continues after this advertisementIt was followed by BDO Unibank Inc., up 3.95 percent to P152.80; Ayala Land Inc., up 0.15 percent to P34.35; SM Prime Holdings Inc., down 2.12 percent to P30; and SM Investments Corp., up 0.54 percent to P930.
Other actively traded stocks were: Metropolitan Bank and Trust Co., up 4.21 percent to P73; Bank of the Philippine Islands, up 1.16 percent to P122.10; Ayala Corp., up 0.16 percent to P620.50; Jollibee Foods Corp., down 0.89 percent to P245.80; and Universal Robina Corp., up 2.07 percent to P96.05 per share. Losers outnumbered gainers, 120 to 89, while 51 companies closed unchanged. —Meg J. Adonis INQ
