Share prices closed higher yesterday on bargain hunting while the peso strengthened as the market awaited the Bangko Sentral ng Pilipinas’ (BSP) policy decision after the bell.
The Philippine Stock Exchange index (PSEi) was up 77.47 points to 6,390.58, a 1.23 percent hike.
The broader All Shares index was up 27.12 points or 0.79 percent to 3,477.70.
Losers edged gainers 99 to 91 with 43 stocks unchanged. Trading turnover reached P4.52 billion.
The peso closed at 58.75 to the dollar, up from 58.86 on Wednesday.
The currency opened at 58.88 and hit a high of 58.75 and a low of 58.92. Trading turnover reached $1.2 billion.
“We expect BSP to stand pat at this meeting, given building inflation pressures and ongoing peso weakness. A decidedly dovish BSP could lead to peso falling as low as 60 against the US dollar,” analysts at MUFG said in a client note.
Ruben Carlo Asuncion, chief economist at the Union Bank of Philippines, said investors are constantly on the lookout for better returns on their investments.
“With the US Fed projecting to potentially cut lesser-than-expected for this year, one would expect investment value slanting toward USD-denominated investments.”
Luis Limlingan, managing director at Regina Capital and Development Corp., said the PSEi sustained its gains for the fourth consecutive day, driven by bargain hunters.
“It was also just announced at market close that the BSP would maintain its key policy rate at 6.5 percent in the meantime, which was in line with the expectations,” he said.
Most actively traded International Container Terminal Services Inc. was down P1.80 to P348. Globe Telecom Inc. was up P40 to P2,090. BDO Unibank Inc. was up P3 to P130. SM Investments Corp. was up P8 to P817. SM Prime Holdings Inc. was up P0.65 to P27.80. Ayala Land Inc. was down P0.05 to P28.95. Metropolitan Bank and Trust Co. was up P1.85 to P67.10. Bank of the Philippine Islands was up P3.60 to P119.60. JG Summit Holdings Inc. was down P0.70 to P26.30. Jollibee Foods Corp. was up P1 to P224.
