PHILIPPINE SHARES rebounded on Thursday as investors bought cheap stocks and as both the US Federal Reserve and Bangko Sentral ng Pilipinas (BSP) kept benchmark rates steady.
The benchmark Philippine Stock Exchange index (PSEi) went up by 53.67 points or 0.88% to end at 6,094.71 on Thursday, while the broader all shares index rose by 22.41 points or 0.68% to close at 3,294.07.
“Shares on the Philippine Stock Exchange advanced as investors hunted for bargains following four days of declines, shrugging off the prospect of higher US interest rates that crimped the appeal of risk-driven assets elsewhere globally, with focus turned to the Philippine central bank’s rate decision,” Globalinks Securities and Stocks, Inc. Senior Trader Mark V. Santarina said in a Viber message.
“People were picking and choosing what they wanted to look at, which was obviously more on the positive side, so sentiment today leaned more towards the green end,” he added.
Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio likewise said in a Viber message that the PSEi climbed on bargain hunting after four days of decline.
“The anticipated pause from the Federal Reserve was also cheered by many as it raised bets that the Bangko Sentral ng Pilipinas will keep policy rates unchanged as well in their meeting this Thursday afternoon. The local bourse opened and stayed in the green territory for the whole session as bargain hunters prevailed,” Mr. Plopenio added.
The US Federal Reserve held interest rates steady on Wednesday but stiffened a hawkish monetary policy stance that its officials increasingly believe can succeed in lowering inflation without wrecking the economy or leading to large job losses, Reuters reported.
Central bank officials held the benchmark overnight interest rate in the current 5.25%-5.5% range, but sketched a stricter policy path moving forward in an inflation fight they now see lasting into 2026.
Meanwhile, the BSP on Thursday kept its policy rate at 6.25% for a fourth straight meeting, as expected by 14 economists in a BusinessWorld poll last week.
Interest rates on the overnight deposit and lending facilities were also left unchanged at 5.75% and 6.75%, respectively.
The majority of sectoral indices climbed on Thursday. Property rose by 60.56 points or 2.45% to 2,530.63; financials went up by 18.81 points or 1.06% to 1,778.98; industrials increased by 56.71 points or 0.65% to 8,757.87; and holding firms climbed by 12.48 points or 0.21% to 5,760.26.
Meanwhile, mining and oil dropped by 83.40 points or 0.79% to 10,371.39; and services went down by 0.64 point or 0.04% to 1,487.56.
Value turnover went up to P5.97 billion on Thursday with 621.99 million shares changing hands from the P5.26 billion with 542.64 million issues seen on Wednesday.
Decliners narrowly outnumbered advancers, 89 versus 84, while 51 names closed unchanged.
Net foreign selling went down to P597.98 million on Thursday from P1.02 billion on Wednesday. — SJT with Reuters