PSEi rises before US CPI data, policy meetings

Philippine stocks rose on Tuesday to end a three-day skid as investors await the release of November US consumer price index (CPI) data and the policy meetings of the US Federal Reserve and the Bangko Sentral ng Pilipinas (BSP).

The bellwether Philippine Stock Exchange index (PSEi) climbed by 64.10 points or 1.02% to end at 6,292.39 on Tuesday, while the broader all shares index jumped by 25.81 points or 0.77% to close at 3,353.46. 

“The index surged on market-on-close buying as traders continued to position ahead of the release of US November inflation data as well as the much-awaited policy meetings of the Federal Reserve and Bangko Sentral ng Pilipinas,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

“This Tuesday, the local market rose… as investors took positive cues from Wall Street overnight amid expectations that US inflation further slowed down in November. Additionally, the anticipation that both the Federal Reserve and the BSP will be holding key policy rates amid cooling inflation in the US and at home contributed to the climb,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

The November US CPI report was set to be released overnight.

Meanwhile, the Fed will hold its final review for the year on Dec. 12-13, while the BSP’s Monetary Board will meet to discuss policy on Dec. 14.

The US central bank is widely expected to keep its target rate at the 5.25%-5.5% range for a third straight meeting this week.

It has hiked rates by a cumulative 525 basis points (bps) since it began its tightening cycle in March 2022.

On the other hand, a BusinessWorld poll last week showed 15 out of 17 analysts expect the Monetary Board to keep its target reverse repurchase rate steady at a 16-year high of 6.5% on Thursday, with the BSP remaining vigilant amid lingering risks to prices despite easing inflation recently.

The BSP has raised benchmark interest rates by a cumulative 450 bps since May 2022.

All sectoral indices closed higher on Tuesday. Financials went up by 25.76 points or 1.54% to 1,698.23; property rose by 24.53 points or 0.88% to 2,786.97; holding firms climbed by 50.94 points or 0.85% to 6,007.55; services increased by 12.21 points or 0.79% to 1,549.91; industrials added 56.92 points or 0.65% to end at 8,795.41; and mining and oil gained 21.33 points or 0.22% to close at 9,565.27. 

Value turnover dropped to PHP 3.25 billion on Tuesday with 314.76 million shares changing hands from the PHP 4.06 billion with 392.39 million issues seen on Monday. 

Advancers beat decliners, 97 to 61, while 55 names closed unchanged. 

Net foreign buying stood at PHP 158.02 million on Tuesday versus the PHP 32.81 million in net selling posted on Monday. — R.M.D. Ochave