Stocks rise further ahead of policy meeting on rates

MANILA, Philippines — Share prices rose for a fifth consecutive session yesterday as investors load up their portfolio ahead of a rate-setting meeting at the central bank today.

The benchmark Philippine Stock Exchange index or PSEi finished in positive territory anew, gaining 16.60 points or 0.23 percent to 7,082.15.

Likewise, the broader All Shares index added 10.88 points or 0.25 percent to close at 4,260.81.

A total of P11.668 billion worth of shares changed hands,with advancers trouncing decliners,130 to 91, leaving 44 stocks unchanged.

Foreign funds were net buyers for a second day, accumulating P2.69 billion worth of stocks while selling P2.56 billion in shares.

Analysts said market players are keeping a close watch on the Bangko Sentral ng Pilipinas’ interest rate action.

“The PSEi pared gains ahead of interest rate decision. The local market went up as much as 93 points, but gains were pared toward the end,” said AB Capital Securities Inc.

It noted that all 19 economists surveyed by Bloomberg expect the BSP to keep the policy rate unchanged at two percent.

“The PSEi continued higher as more investors turned optimistic, brought by a decline in new global COVID-19 cases. This renewed optimism has encouraged investors who were on the sidelines to take a second look at the market,” said Chris Mangun of AAA Southeast Equities.

He said purchases by foreign investors lifted the market after months and months of heavy selling.

“The main index traded higher earlier in the session but gave up some of its gains toward due close as selling pressure picked up. We may see more profit-taking in the next trading session as it will be the last for the week due to the holiday on Friday,” Mangun said.