PSEi gains 1.56%

Most local stocks firmed up for a second session in a row on Monday as regional markets stabilized ahead of a crucial US Federal Reserve open market committee meeting this week.

The main-share Philippine Stock Exchange index gained 97.15 points or 1.56 percent to close at 6,339.41 as investors awaited clues on whether the US Fed would scale back its aggressive bond-buying activities that have boosted emerging market assets in recent years.

Across the region, financial markets were mostly higher after last week’s bloodbath that priced in some probability that the Fed would curb its liquidity-inducing bond buyback program.

There were 99 advancers against 53 decliners in the local market while 39 stocks were unchanged. Value turnover amounted to P6.98 billion.

Despite the index rebound, foreign investors were still in a net selling position, with foreign selling of P4.2 billion exceeding foreign buying of P3.69 billion for the day. Since Tuesday last week, some foreign investors have been unwinding local trades and converting into dollars due to jitters over the Fed’s monetary stance.

The US Fed is set to meet this week (June 20) during which global markets await a clearer direction on American monetary policy.

In the local market, the day’s rebound was led by Ayala Land (+6.12 percent), Manila Water (+5.71 percent) and Jollibee (+5.38 percent). San Miguel and Robinsons Land also benefited, both rising more than 3 percent while Megaworld, Ayala Corp., ICTSI, BPI and Metrobank all gained more than 2 percent.

On the other hand, the day’s top loser was Philex Mining (-2.37 percent) while Aboitiz Equity Ventures and JG Summit also fell by more than 1 percent. Doris C. Dumlao