PSEi rises ahead of BSP policy meet
Philippine shares extended gains on Wednesday, with port operator International Container Terminal Services Inc. (ICTSI) providing a much-needed lift as investors remained cautious ahead of the central bank’s policy decision.
The Philippine Stock Exchange Index (PSEi) rose by 0.26 percent, or 15.34 points, to finish at 5,821.51.
The broader All Shares also inched up by 0.14 percent, or 4.43 points, to 3,238.61.
Services realized the highest gains, while financials, industrial and holding firms ended in the red.
Trading was quite active, with net value turnover at P6.30 billion.
Philstocks Financial Inc. research manager Japhet Tantiangco attributed Wednesday’s gains to the 2.38-percent rally of index heavyweight ICTSI, a company led by tycoon Enrique Razon Jr.
Market breadth, however, remained negative. It closed with 92 advancers, 83 decliners and 73 unchanged.
Tantiangco said this reflected investors favoring patience as they await the next monetary policy move.
This was echoed by Luis Limlingan, head of sales at Regina Capital Development Corp., saying “optimism remained capped amid cautious sentiment.”
The Bangko Sentral ng Pilipinas is expected to hike interest rates this week after inflation soared to a three-year high of 7.2 percent in September, blamed on more expensive fuel prices coupled with food supply disruptions caused by heavy monsoon rains.
Central banks increase interest rates to stabilize inflation. Higher borrowing costs could prompt consumers and businesses to spend less, eventually pulling down demand and prices.
Ayala Land Inc. was the top gainer, jumping 3.09 percent to P16. PLDT Inc., meanwhile, was the main laggard after dropping 4 percent to P1,200.
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