PHILIPPINE SHARES rebounded on Wednesday, with the key benchmark testing the 6,400 mark intraday, after the Bangko Sentral ng Pilipinas (BSP) chief said they are unlikely to pursue aggressive policy as inflation risks persist.
The Philippine Stock Exchange index (PSEi) rose 0.77% or 49.01 points to close at 6,353.04, while the broader index of all shares rose 0.59% or 20.30 points to end at 3,447.34.
The PSEi opened Wednesday's session at 6,341.98, up from Tuesday's close at 6,304.03. It rose as high as 6,436.11 intraday but pared its gains before the closing bell.
“Investors are responding well to the BSP's comments on its moderate monetary policy stance and are riding a wave of corporate earnings releases, most of which are in line with or ahead of expectations,” said Unicapital Securities, Inc.'s Head of Research. Wendy B. Estacio-Cruz. “Any confirmation of a gradual easing approach, coupled with strong corporate earnings, could provide further support for the PSEi in the near term.”
“Local loans remained high as investors accepted the BSP's view that the likelihood of further monetary tightening this year remains low, supporting appetite,” said Regina Capital Development Corp. Head of Sales Luis A. Limlingan. Optimism for a possible second half of the economy has driven market sentiment despite persistent external risks.â
BSP Governor Eli M. Remolona, ââJr. he said on Tuesday he saw only a “small chance” of tightening monetary policy this year, despite renewed volatility that could re-set inflation and prospects for economic recovery in the second half.
In June, the Monetary Board raised its lending rate by 25 basis points for the second consecutive meeting, bringing it to a nearly one-year high of 4.75%.
It will hold its next rate-setting meeting on Aug. 27.
Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco added that the market is benefiting from a more aggressive hunt following the previous day's decline.
“Sales hunting in blue-chip stocks ahead of the second-quarter earnings season also boosted the benchmark,” said Mr. It's the same.
Most industrial indexes closed higher. Firms holding shares rose by 2.72% or 120.44 points to 4,542.81; the commodity increased by 1.45% or 27.78 points to 1,937.72; services rose 0.05% or 1.78 points to 3,437.69; financials rose 0.17% or 3.45 points to 1,932.14; and industrials rose 0.19% or 16.05 points to 8,355.48.
Meanwhile, mining and oil fell by 0.72% or 116.89 points to 15,967.16.
Advancers outnumbered dissenters, 117 to 75, while 56 names were not changed.
The stock rose to P7.44 billion on Wednesday with 494.98 million shares traded from P6.67 billion and 790.17 million shares changed hands on Tuesday.
Total imports increased to P657.58 billion from P196.45 million in the previous period. – Sheldeen Joy Talavera
