Stocks rally ahead of BSP meeting

Published March 25, 2021, 3:42 PM

by James A. Loyola

Share prices continued to rise ahead of the Bangko Sentral policy meeting and on the arrival of more vaccines. 

Photo credit: PSE Information Desk

The PSEi jumped 83.99 points or 1.29 percent to close at 6,581.00 although the Financials sector retreated slightly. 

Volume was low though at 2.49 billion shares worth P6.1 billion as gainers beat losers 136 to 62 with 50 issues unchanged. 

“Investors continued to buy into Philippine shares which were heavily sold last week as covid cases continued to stabilize, regional tech stocks continued to be sold and investors made bets ahead of the BSP meeting this afternoon,” said Regina Capital Development Corporation Managing Director Luis Limlingan. 

Philstocks Financial Senior Analyst Japhet Tantiangco said “The local market rallied on the back of expectations that the Bangko Sentral ng Pilipinas will keep policy rates unchanged in its decision.”

He added that, “Keeping the policy rates at accommodative levels is seen to provide support to the economy as it fights its way out of the pandemic-induced recession.”

AAA Equities Head of Research Chris Mangun said “The PSEi rallied further led by gains in large-cap holding firms. The decline in new COVID-19 cases reported yesterday as well as progress on the rollout of vaccines, may have improved the sentiment.“

He noted though that, “Despite the rally, the general sentiment remains very cautious. We may see a pullback as it approaches stronger resistance levels.”