Possible reserve cut drives PSEi up for second day
MANILA -The benchmark Philippine Stock Exchange index (PSEi) rose for a second-straight session as the head of the Bangko Sentral ng Pilipinas (BSP) signaled they were looking at options to slow or reverse the current cycle of aggressive monetary tightening.
The BSP’s next policy meeting is scheduled Thursday, May 18.
The PSEi rose 0.70 percent, or 46.21 points, to 6,635.11 while the broader All Shares index added 0.41 percent, or 14.48 points, to 3,533.84.
According to news reports, BSP governor Felipe Medalla said they would consider options for “loosening monetary conditions even if we cannot cut rates.”
He said one option was the cut the reserve requirement that banks are required to hold, which would then free up resources for loans and investments.
While the PSEi ended higher, Asian equities were subdued as US debt ceiling woes weighed on sentiments.
Asian shares muted, US debt ceiling talks weigh on risk appetite
Meanwhile, a total of 1.07 billion shares valued at P4.34 billion changed hands while foreigners were net buyers amounting to P153.35 million, data from the stock exchange showed.
Most active
BDO Unibank Inc. was the top traded stock as it slipped 0.29 percent to P136 per share.
It was followed by Ayala Corp., up 2.09 percent to P684; Ayala Land Inc., up 1.89 percent to P27; GT Capital Holdings Inc., up 2.42 percent to P507; and SM Investments Corp., up 1.02 percent to P940 per share.
SM Prime Holdings Inc. was up 1.80 percent to P34; Jollibee Foods Corp., up 0.44 percent to P227; Metro Pacific Investments Corp., flat at P4.43; Bank of the Philippine Islands, up 0.86 percent to P105; and Monde Nissin Corp., up 1.02 percent to P8.88 per share.
Overall, there were 97 losers against 93 advancers while 41 companies closed unchanged, stock exchange data showed.
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