The local stock market rose further as investors hope for a rate hike pause after the Bangko Sentral meeting on Thursday.
The main index added. 46.21 points or 0.70 percent to close at 6,635.11 as the Property sector led the advance although the Industrial and Mining counters retreated. Volume dropped to 1.07 billion shares worth P4.34 billion as losers outpaced gainers 97 to 93 with 41 unchanged.
“The PSEI continued to rally, breaching the 6600 level, as investors await the BSP's interest rate decision tomorrow,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
Philstocks Financial Assistant Research Manager Claire Alviar said “Some investors were pricing in already the possibility that the BSP may pause hiking rates, especially after the statement of the BSP Governor Felipe Medalla.”
“Moreover, the surge in total foreign investment pledges to the Philippines helped in lifting the sentiment,” she added.
China Bank Capital Managing Director Juan Paolo Colet said “The index hurdled its 6,600 resistance as investors turned optimistic about the prospect of a BSP rate hike pause as well as progress in US debt ceiling talks.”
He noted that, “Most investors already expect the BSP to hold its key policy rate, but there is anticipation that the Monetary Board could signal the timing of a potential cut in bank reserve requirements. The tone of the BSP’s pronouncements tomorrow will determine whether the index can sustain its rally.”