PHILIPPINE SHARES continued to climb on Tuesday ahead of an expected rate cut by the Bangko Sentral ng Pilipinas (BSP) and following Wall Street’s strong performance overnight.
The Philippine Stock Exchange index (PSEi) rose by 1.77% or 129.90 points to close at 7,456.31 on Tuesday, while the broader all shares index went up by 1.53% or 61.73 points to end at 4,086.45.
“The local market rallied this Tuesday. Investors continued to draw optimism from the expectations that the Bangko Sentral ng Pilipinas will deliver another policy rate cut in their upcoming meeting this week,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “The positive cues from Wall Street’s record performance overnight also helped in Tuesday’s session.”
“Philippine shares made a strong comeback after yesterday’s weak start, as investors start making bets ahead of the latest BSP meeting, while others assess the Fed’s latest move. The S&P 500 and Dow Jones hit new record highs on Monday, driven by anticipation for key corporate earnings,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.
A BusinessWorld poll showed that 16 out of 19 analysts expect the Monetary Board to slash benchmark interest rates by 25 basis points at its policy meeting on Wednesday (Oct. 16) to bring the target reverse repurchase rate to 6%.
Meanwhile, Wall Street ended higher on Monday, with both the S&P 500 and the Dow posting fresh record finishes, as investors bought into technology stocks ahead of a busy week packed with corporate earnings and crucial economic data, Reuters reported.
The S&P 500 gained 44.82 points or 0.77% to 5,859.85 points, while the Nasdaq Composite climbed 159.75 points or 0.87% to 18,502.69. The Dow Jones Industrial Average rose 201.36 points or 0.47% to 43,065.22.
“Despite the gains, investors remained cautious due to uncertainties surrounding the upcoming presidential election, rising Treasury yields, Federal Reserve policy, and Middle East tensions,” Mr. Limlingan added.
The majority of sectoral indices closed higher on Tuesday. Property surged by 2.06% or 60 points to 2,969.20; holding firms went up by 1.77% or 110.09 points to 6,326.71; financials climbed by 1.71% or 40.46 points to 2,400.80; industrials rose by 1.43% or 141.93 points to 10,070.51; and services increased by 1.37% or 30.67 points to 2,263.13.
Meanwhile, mining and oil dropped by 0.25% or 22.67 points to end at 8,764.54.
Value turnover increased to P6.41 billion on Tuesday with 584.49 million shares changing hands from the P3.88 billion with 660.35 million issues traded on Monday.
Advancers outnumbered decliners, 124 versus 92, while 45 names closed the session unchanged.
Net foreign buying stood at P638.15 million on Tuesday, a turnaround from the P519.69 million in net foreign selling recorded on Monday. — Revin Mikhael D. Ochave with Reuters