Dovish bets lift PSEi closer to 7,000
Philippine Stock Exchange, Bonifacio Global City. INQUIRER PHOTO/LYN RILLON
Prospects of another rate cut by the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve energized investors enough to push the benchmark stocks index closer to the 7,000 barrier.
The Philippine Stock Exchange Index (PSEi) closed Monday’s session up by 0.69 percent, or 48.16 points, to 6,984.25.
Meanwhile, the broader All Shares Index added 0.67 percent, or 25.19 points, to 3,778.05.
A total of 804.4 million shares worth P7.12 billion changed hands as foreigners made net purchases worth P1.03 billion, stock exchange data showed.
READ: Asian markets tumble as US jobs data stoke recession fears
The PSEi’s closing comes from an intraday high of 7,025.46 as traders cheered “favorable inflation figures” in August that signaled another possible rate cut, said Japhet Tantiangco, research manager at Philstocks Financial Inc.
Article continues after this advertisementThe local bourse has been trying to break out of the 7,000 psychological resistance level since the BSP cut rates last month. It last closed above 7,000 in February last year.
Article continues after this advertisementLikewise, the “increasing likelihood” of the American central bank easing its key monetary policy by next week had driven optimism, Tantiangco said.
Banks, which are among the key industries seen to benefit from another interest rate cut, led the gainers with a 1.36-percent increase as Sy family-led BDO Unibank Inc., the top-traded stock, rose by 1.59 percent to P159.50 per share.
It was followed by Security Bank Corp., which soared by 8.91 percent to P78.20; Universal Robina Corp., up 0.72 percent to P90.70; Ayala Land Inc., up 1.99 percent to P35.95; and GT Capital Holdings Inc., up 3.68 percent to P705.
AREIT Inc. was down 1.39 percent to P35.45; SM Investments Corp., up 1.27 percent to P920; SM Prime Holdings Inc., up 1.50 percent to P30.55; Bank of the Philippine Islands, down 0.79 percent to P125; and International Container Terminal Services Inc., up 0.50 percent to P402 each.
Losers outnumbered gainers, 104 to 96, while 50 companies closed unchanged.
