Local shares up as market awaits US central bank’s move

MANILA, Philippines — The Philippine Stock Exchange Index (PSEi) rose on Wednesday, albeit staying within the 6,800 range, mirroring the upward trend in US stocks as the US Federal Reserve kicked off its policy meeting.

By the end of the session, the benchmark index added 0.12 percent, or 8.34 points, to 6,856.77. The broader All Shares Index rose 0.16 percent, or 5.62 points, to 3,572.10.

Stock exchange data showed that 786.63 million shares valued at P8.78 billion changed hands, while foreigners made net purchases of P391.41 million.

Fed policy rates

“Though it is widely expected that the Fed will maintain its key policy rates, analysts will be taking into consideration any rhetoric from officials regarding the timing of the cutting of interest rates and their view on controlling inflationary pressures,“ said Luis Limlingan, head of sales at stock brokerage house Regina Capital Development.

The American central bank is expected to maintain high policy rates due to higher inflation data released last week.

Claire Alviar, research analyst at Philstocks Financial Inc., noted that US stocks increased overnight due to a decline in US Treasury yields.

BDO Unibank Inc. was the top-traded stock, increasing 0.33 percent to P154 per share. —Meg J. Adonis