Trade optimism, dovish BSP outlook lift Philippine stocks
The Philippine Stock Exchange index (PSEi) gained ground, boosted by easing United States-China trade tensions and investor anticipation of more rate cuts from the Bangko Sentral ng Pilipinas (BSP).
The main index rose 23.89 points (0.39 percent) to finish at 6,076.22 on Tuesday, Oct. 13. The Mining sector led the advance, while the Services sector declined.
Trading volume improved to 3.17 billion shares valued at P6.17 billion. Market breadth was positive, with 102 gainers against 87 losers and 62 issues unchanged.
“The PSEi extended its gains as trade uncertainties between the US and China eased after the US expressed their intention to meet with Chinese officials in South Korea, boosting investor sentiment and driving today’s market session,” said Luis Limlingan, Managing Director of Regina Capital Development Corp.
Philstocks Financial Research Manager Japhet Tantiangco attributed the movement to continued “bargain hunting” by investors.
He also cited the “recent decline in the local long-term treasury yields amid the dovish outlook of the BSP” and “positive cues from Wall Street” as factors helping the local bourse.
Rizal Commercial Banking Corp. Managing Director Michael Ricafort noted the PSEi's slight improvement for the second straight day was amid bargain-hunting following dovish signals from Department of Finance Secretary and Monetary Board Member Ralph Recto.