Philippine shares rally, tracking Wall Street’s rise 

Philippine shares climbed for a fourth straight day on Thursday, tracking Wall Street’s overnight rise, as bargain hunting continued ahead of the central bank’s policy announcement.

The Philippine Stock Exchange index (PSEi) rose by 1.22% or 77.47 points to end at 6,390.58 on Thursday, while the broader all shares index climbed by 0.78% or 27.12 points to close at 3,477.70.

“The PSEi sustained its gains for the fourth consecutive day, driven by bargain hunters. It was just announced at market close that the Bangko Sentral ng Pilipinas (BSP) would maintain its key policy rate at 6.5% in the meantime, which was in line with the consensus expectations,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The BSP on Thursday kept its policy rate at a 17-year high of 6.5% for a sixth straight meeting, as expected by all 15 analysts in a BusinessWorld poll.

“Philippine shares edged higher as investors made bets ahead of the latest inflation data, which is set to be released on Friday with May’s PCE (personal consumption expenditures) price index. Investors hope the report will show easing pricing pressures, which could increase the likelihood that the Fed will lower interest rates later this year,” Mr. Limlingan added.

“The local market rose as investors took positive cues from Wall Street overnight amid optimistic anticipation over the US May PCE inflation report, which will be released by the end of the week,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio likewise said in a Viber message.

On Wall Street, the Dow Jones Industrial Average rose 15.64 points or 0.04% to 39,127.80; the S&P 500 gained 8.60 points or 0.16% to 5,477.90; and the Nasdaq Composite gained 87.50 points or 0.49% to 17,805.16, Reuters reported.

Investors await Friday’s release of the US PCE price index, the US Federal Reserve’s preferred inflation measure. Economists polled by Reuters expect PCE annual growth to ease to 2.6% in May.

All sectoral indices closed higher on Thursday. Financials jumped by 2.49% or 47.17 points to 1,934.55; industrials went up by 1.06% or 94.63 points to 8,977.11; property increased by 0.92% or 22.97 points to 2,504.98; holding firms climbed by 0.55% or 30.08 points to 5,501.71; services rose by 0.42% or 8.42 points to 1,986.56; and mining and oil inched up by 0.23% or 20.03 points to 8,554.89.

“Among the index members, Converge ICT Solutions, Inc. was at the top, rising 3.83% to PHP 11.40. JG Summit Holdings, Inc. lost the most, dropping 2.59% to PHP 26.30,” Mr. Plopenio said.

Value turnover dropped to PHP 4.52 billion on Thursday with 508.74 million shares changing hands from the PHP 4.96 billion with 323.63 million issues traded on Wednesday.

Decliners beat advancers, 99 versus 91, while 43 names were unchanged.

Net foreign selling stood at PHP 96.3 million on Thursday, a reversal of the PHP 84.58 million in net buying recorded on Wednesday. — R.M.D. Ochave with Reuters