Bourse recovers as key policy rates remain unchanged

MANILA, Philippines (Xinhua) - The stock market bounced back today following the decision of the local central bank to keep key policy rates steady.

The Philippine central bank decided to retain overnight borrowing or reverse repurchase facility at 3.5 percent and overnight lending or repurchase facility at 5.5 percent.

The bellwether Philippine Stock Exchange index added 0.70 percent, or 43.93 points, to 6,359.62, while the broader all-share index rose by 0.55 percent, or 20.97 points, to 3,835.20.

Trading volume reached 1.54 billion shares worth P9.3 billion ($206.96 million) with 82 stocks advancing, 60 declining, and 52 were unchanged.

Of the six counters, only the financials bucked the trend.

2TradeAsia.com said the latest budget deficit for January might prod investors to believe possible tightening in monetary policy may be considered soon. The Philippine government reported that budget deficit jumped by 75 percent on year to P34.22 billion ($760.14 million) in January.

Investors are also wary of the US Federal Reserve's plan to further cut its stimulus program, 2TradeAsia.com said.

"Most will check on the local equities' ability to keep itself above the 6,300 territory, as further declines might warrant range- trading within 6,200-6,400,"  2TradeAsia.com said.

Stocks in the 30-company index were mostly up. These were Ayala Land, Inc., heavyweight Philippine Long Distance Telephone Co., and SM Investments Corp.