PSEi extends rally on US Fed outlook

Philippine stocks extended their climb on Thursday as easing concerns over the United States Federal Reserve’s policy outlook lifted investor sentiment, although trading remained subdued as many investors stayed on the sidelines.

The benchmark Philippine Stock Exchange Index (PSEi) rose 0.36 percent or 22.65 points to close at 6,325.15.

Philstocks Financial Inc. said the market drew support after the US producer price index for June declined by 0.3 percent, reinforcing expectations that inflation pressures are easing and reducing uncertainty over the Fed’s next policy moves.

Luis Limlingan, head of sales at Regina Capital Development Corp., said the PSEi stayed in positive territory as investors maintained a cautiously optimistic stance ahead of the corporate earnings season, already pricing in some second-quarter financial results.

“Buying interest in select blue-chip stocks helped keep the benchmark index afloat despite lingering external uncertainties. Market participants also continued to monitor global developments and economic data for fresh cues on the market’s direction,” Limlingan said.

Net value turnover reached only P4.71 billion, below the year’s average of P6.3 billion, reflecting cautious trading despite the market’s gains. Foreign investors provided support, ending the session as net buyers with inflows of P195.39 million.

Sectoral performance was mixed. Mining and oil stocks led the advance, climbing 2.9 percent, while the services index posted the biggest decline, slipping 0.23 percent.

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PLDT Inc. emerged as the session’s top gainer, rallying 3.86 percent to P1,238 per share.

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