The Philippine Stock Exchange (PSE) is looking at introducing more derivatives trade in its platform by entering into a memorandum of understanding (MOU) with the Taiwan Stock Exchange (TWSE).
Under the MOU, PSE and TWSE will collaborate on product development and market promotion and share best practices in areas such as regulations, ESG practices, and market trends, among others.
“This MOU is a good starting point for the relationship between PSE and TWSE and is key to fostering the friendship recently formed between us and exploring mutually beneficial endeavors for the two bourses. TWSE’s insights on product and technology development, regulatory and sustainability initiatives will serve as invaluable inputs to our Exchange,” said Ramon Monzon, PSE president.
The PSE said it will form a working group together with the TWSE to explore the areas of cooperation covered by the MOU.
Brokers, meanwhile, remain cautious despite the start of a monetary easing period in central banks as this action does not assure a smooth rise in the stock market.
The Philippine Stock Exchange index (PSEi) closed Tuesday’s trading at 6,973.41.
April Tan, Colfinancial.com chief equity strategist, said while inflation has peaked and rate cuts start, the impact will take a while.
“After a rate cut, the market goes down. What is more important is the direction of economic growth. We have to monitor how the US economy will perform. The question is, are we going to see a soft landing or a hard landing?” said Tan.
Abacus Securities Corp. said while lower interest rates usually boost stock market performance, prolonged low rates can sometimes lead to asset bubbles if investors push stock prices too high in pursuit of returns.
“If economic conditions fail to improve as anticipated or inflation rises significantly, the advantages of lower rates could be diminished, impacting market stability,” it said in an investors note.
The PSEi closed up 11.45 points to 6,973.41, a 0.16 percent hike.
The broader All Shares index was up 11.55 points or 0.31 percent to 3,761.28.
Gainers edged losers 110 to 94 with 51 stocks unchanged. Trading turnover reached P6.8 billion.
The peso closed at 56.281 to the dollar, up from Thursday’s 56.333. The currency opened at 56.222 and hit a high off56.17 and a low of 56.31. Trading turnover reached $1.59 billion.
Japhet Tantiangco, analyst at Philstocks Financial Inc., said sentiment got a boost from the Federal Reserve’s rate cut cues from the Jackson Hole Economic Symposium.
“Investors cheered the Fed’s dovish signals as monetary policy easing by the Fed would give more room for the BSP (Bangko Sentral ng Pilipinas) to ease their policy too,” Tantiangco said.
Trading was quite active with net value turnover posting P6.49 billion, higher than the year-to-date average of P4.96 billion. Foreigners were net buyers with net inflows amounting to P897.83 million.
Most actively International Container Terminal Services Inc. was down P8.80 to P408.80.
BDO Unibank Inc. was down P2.80 to P151.20. SM Investments Corp. was up P2 to P937.
Ayala Land Inc. was up P0.75 to P33.50. DigiPlus Interactive Corp. was up P2.65 to P23.60.
Bank of the Philippine Islands was up P2.60 to P127.40. SM Prime Holdings Inc. was up P1.30 to P31. Universal Robina Corp. was downP2.55 to P93.70. Ayala Corp. was down P7.50 to P626. Metropolitan bank and Trust Co. was down P0.30 to P74.50.
