EconomyForex

PHL shares inch up ahead of central bank reviews

2 Mins read
REUTERS

STOCKS inched higher on Monday as investors stayed on the sidelines ahead of the Bangko Sentral ng Pilipinas’ (BSP) and US Federal Reserve’s policy meeting this week.

The 30-member Philippine Stock Exchange index (PSEi) gained 5.44 points or 0.07% to end at 7,197.61 on Monday. The broader all shares index also rose 2.36 points or 0.06% to 3,832.79.

“Philippine shares started the week quietly as market participants are awaiting the BSP’s Monetary Board which will be meeting on the 16th,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

All 15 analysts in a BusinessWorld poll held last week expect the Monetary Board to keep interest rates steady at its last policy review for the year. The BSP has not adjusted its policy settings since November 2020.

Meanwhile, Papa Securities Corp. Equity Trader Manny P. Cruz said investors are also waiting for the Fed’s policy meeting on Dec. 14-15.

“This could set the tone for the hike in US interest rates by second quarter of 2022 that could put pressure on local stocks,” Mr. Cruz said in a Viber message.

Fed Chairman Jerome H. Powell and other central bank officials have said they will be assessing the need to speed up the tapering of their asset purchases to conclude it within a few months. Some officials have also floated the possibility of raising interest rates by 2022.

Back home, sectoral indices were mixed on Monday. Financials climbed 16.99 points or 1.06% to 1,607.46; property went up by 34.24 points or 1.05% to end at 3,268.14; and mining and oil increased by 63.18 points or 0.68% to 9,259.63.

On the other hand, services dropped 9.95 points or 0.49% to 1,984.02; holding firms slid 30.65 points or 0.44% to 6,938.03; and industrials went down 23.03 points or 0.22% to 10,374.92.

Value turnover decreased to P6.66 billion with 1.64 billion shares traded on Monday from the P15.53 billion with 3.57 billion issues that switched hands on Friday.

Decliners narrowly outnumbered advancers, 96 against 93, while 57 closed unchanged.

Foreigners turned buyers on Monday, logging P60.07 million in net purchases versus the P9.57 billion in net outflows recorded on Friday.

Papa Securities’ Mr. Cruz put the PSEi’s resistance at 7,270 and support at 7,000.

“Meanwhile, 6,940 seems to be the closest support area to watch, while the 7,450 level may be considered the nearest resistance to observe,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message.

Asian stocks also pushed ahead on Monday with investors wagering markets can weather whatever comes from a host of central bank meetings this week, including the likely early end to US policy stimulus, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.3%, after bouncing 1.7% last week. — M.C. Lucenio with Reuters

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