Local stocks bounced back after a three-day slump in thin trade Friday as prospects of fresh interest rate cuts triggered selective buying.
The main-share Philippine Stock Exchange index added 21.52 points or 0.41 percent to finish at 5,210.89. The index was led higher by the interest rate-sensitive property counter, which rose 1.68 percent as the market started to price in a prospective cut in the Bangko Sentral ng Pilipinas’ policy rates.
The services and mining/oil counters remained sluggish.
Value turnover was thin at P4.2 billion. There were 85 advancers against 69 decliners while 40 stocks were unchanged.
The index was led higher by Ayala Land, Robinsons Land, Banco de Oro, SM Prime, JG Summit, Aboitiz Power, SMC, Alliance Global and ICTSI. Shares of GT Capital, Philippine Seven and Puregold also surged yesterday.
On the other hand, the price declines in Ayala, PLDT, URC, SM Investments, Manila Water, DMCI and Metrobank tempered the PSEi’s rise.
Banco de Oro chief strategist Jonathan Ravelas said the market’s performance yesterday still indicated further weakness toward the 5,150 support level, a breach of which would see tests of the 5,000 levels.
Ravelas added that financial markets appeared to be “anticipating a rate cut from the BSP.” Doris C. Dumlao