Index recovers from 2-day slump

MANILA, Philippines - Share prices managed to close higher yesterday, bouncing back from the sharp decline in the last two trading days, analysts said.

The benchmark Philippine Stock Exchange index (PSEi) inched up 7.66 points, or 0.10 percent, to finish at 7,306.69, while the broader All Shares index gained 7.18 points or 0.16 percent to finish at 4,393.16.

“The market ended flat as a reality check continues to hit the local index. Euphoria from the orderly election is over. Investors are now more focused on valuations and pending rate hike in the US,” said Astro del Castillo, managing director at First Grade Finance Inc.

Total value turnover reached P8.008 billion in a session which saw decliners outnumber advancing stocks, 90 to 89 while 41 stocks were left unchanged.

For Justino Calaycay of A&A Securities, the mood in the region including the Philippines was generally described as cautious as investors are gearing up for the next US Federal Reserve meeting on June 14 to 15.

“The emerging bias among market watchers and analysts leans toward a possible tweak as the broad economy gains further momentum. The minutes of the previous meeting where the rates were held steady and recent pronouncements by a couple of Federal Reserve Board Members have ignited this view,” he said.