PSEi Rallies as BSP Signals Measured Rate Hike, Boosting Investor Sentiment

MANILA, Philippines — The local stock market bounced back as investor sentiment got a boost from the Bangko Sentral ng Pilipinas (BSP)’s indication that there is only a small chance of it going aggressive on its policy tightening. The benchmark Philippine Stock Exchange index (PSEi) capped off yesterday’s session at 6,353.04, up by 0.78 percent or 49.01 points. The broader All Shares index also went up by 0.59 percent or 20.30 points, finishing at 3,447.34. RCBC chief economist Michael Ricafort said the PSEi advanced after BSP Governor Eli Remolona Jr. signaled intervention and possible BSP rate hike, likely 25 basis points instead of 50 basis points. Ricafort said the market likewise got a boost from mostly better, or at least decent, net income results of local listed companies that have reported so far. “The local bourse ended higher as investors welcomed the BSP’s view that the likelihood of more aggressive monetary tightening this year remains low, supporting risk appetite,” Luis Limlingan of Regina Capital said. Limlingan said bargain hunting in blue-chip stocks ahead of the second quarter earnings season also lifted the benchmark index. “Optimism over a potential second half economic recovery further underpinned market sentiment despite lingering external risks,” Limlingan said. All sectors were in the green, except for mining and oil, which shed 0.73 percent. Holding firms led the charge with a 2.72-percent surge, followed by property, which jumped by 1.45 percent. Trading strengthened further, with total turnover value improving to P7.44 billion from P6.67 billion the previous day. Advancers squashed decliners, 117 to 75, while 56 issues were unchanged. ICTSI remained the top traded stock, closing the session lower by 0.20 percent to P980 per share. It was followed by BDO Unibank, which fell by 1.26 percent to P125.40, and Aboitiz Equity Ventures, which soared by 6.73 percent to P36.50.