PSEi rises on bargain hunting

The local index edged higher as investors took advantage of lower prices following Wednesday’s dip, with some optimism buoyed by a potential rate cut.

By the closing bell, the Philippine Stock Exchange Index (PSEi) climbed 0.45 percent or 28.58 points to finish at 6,320.67.

The broader All Shares Index also added 0.37 percent or 13.46 points to 3,607.65.

The major sectors had a mixed performance, with services providing the support with a 2.96 percent increase.

Thursday’s trading, however, “weakened” as net value turnover was at P5.79 billion, said Philstocks financial research manager Japhet Tantiangco.

“The local market rose as investors resumed their bargain hunting with hopes pinned on another possible rate cut by the Bangko Sentral ng Pilipinas in their February meeting,” he said.

This expectation was fueled by the December inflation data, which was logged at 1.8 percent.

Although higher than November’s 1.5 percent, the figure was still within the central bank’s 1.2 to 2 percent forecast range for the period.

Analysts said the soft inflation gives monetary authorities more room to slash interest rates, a development that could help stimulate economic growth.

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“Buying pressure remained intact despite unemployment data and the Peso hitting an all-time low against the USD,” Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., added in a separate message.

Alliance Global Group Inc. gained the most on Thursday, rising by 4.86 percent to P8.20.

BDO Unibank, meanwhile, was the bottom performer, dropping 4.76 percent to P136.20.

Winners outnumbered losers at 118 to 94, while 49 issues did not change hands.