Share prices rose Monday on increased risk appetite as investors lauded the Bangko Sentral ng Pilipinas’ (BSP) decision last week to increase liquidity in the financial market by cutting banks’ reserve requirement.
The peso closed lower on correction.
The Philippine Stock Exchange index was up 164.93 points to 7,417.25, a 2.27 percent hike.
The broader All Shares index was up 62.40 points or 1.6 percent to 3,958.02.
Gainers edged losers 121 to 93 with 52 stocks unchanged. Trading turnover reached P8.68 billion.
The peso closed at 55.97 to the dollar, down from 55.69 on Friday. The currency opened at 55.67, an intraday high, and hit a low of 55.97. Trading turnover reached $1.39 billion.
The peso slipped 0.5 percent, but is still its best close since March 19 when it closed at 55.92, according to Michael Ricafort, chief economist at Rizal Commercial Banking Corp.
On Friday, the BSP said it will reduce the number of reserves commercial banks are required to hold by 250 basis points from October 25.
It hinted that further cuts are on the table based on the inflation outlook although it noted there was “no need” to reduce interest rates immediately after the Federal Reserve rate reduction.
Juan Paolo Colet, managing director at Chinabank Capital Corp., said the index closed at its highest level since February 2022 on the back of the BSP’s significant reduction of the reserve requirement ratio and strong foreign fund flows.
“The market is technically overbought and we expect a pullback very soon,” he said.
Most actively traded Metro-politan Bank and Trust Co. was up P1.85 to P79.45. International Container Terminal Services Inc. was up P10.60 to P414. BDO Unibank Inc. was up P3 to P163.
Security Bank Corp. was up P7 to P96.50. Ayala Land Inc. was up P0.90 to P37.20. Bank of the Philippine Islands was up P6.70 to P139.20. SM Prime Holdings Inc. was up P0.60 to P32.80.
Puregold Price Club Inc. was up P0.70 to P30.40. SM Investments Corp. was up P21 to P991. Ayala Corp. was up P5 to P695.
