Odds of a fresh rate cut pull up PSEi

By: 2 months ago

Hopes for another monetary policy easing this week slightly pulled up the local bourse, as it finally snapped its four-session losing streak to open the week in the green.

By the closing bell, the benchmark Philippine Stock Exchange Index (PSEi) inched up by 0.22 percent, or 16.09 points, to 7,326.41. The broader All Shares Index, on the other hand, added 0.24 percent, or 9.56 points, to close at 4,024.72 on Monday.

The PSEi peaked at 7,554.68 on Oct. 7, but inflation woes in the US and a weaker peso eventually dragged it down.

Investors remained cautious as value turnover was tepid at P3.68 billion for 660.35 million shares, or below the P5.2-billion year-to-date average, data from Philstocks Financial Inc. showed.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said the PSEi’s slight gain was due to investors anticipating the Monetary Board’s next policy-setting meeting on Wednesday, Oct. 16.

Analysts have said the Bangko Sentral ng Pilipinas may slash interest rates by another 25 basis points to 6 percent. A rate cut is generally good news for consumers and investors, as this lowers borrowing costs.

Sy family-led BDO Unibank Inc. was the most actively traded stock as it gained 1.34 percent to P158.60 per share.

It was followed by International Container Terminal Services Inc., down 1.42 percent to P402; Ayala Land Inc., up 1.84 percent to P36; SM Investments Corp., down 0.62 percent to P959; and Ayala Corp., down 0.28 percent to P720 each.

Other actively traded stocks were Jollibee Foods Corp., up 0.36 percent to P275; JG Summit Holdings, flat at P26.30; SM Prime Holdings Inc., down 0.32 percent to P31.40; Bank of the Philippine Islands, up 1.01 percent to P140; and Metropolitan Bank and Trust Co., down 0.13 percent to P78.40.

Gainers outnumbered losers, 128 to 73, while 54 companies closed unchanged, stock exchange data showed.