Philippine stocks are rising, following Wall Street’s rise

PHILIPPINE SHARES rose for a fourth straight day on Thursday, following Wall Street’s overnight gains as bargain hunting continued ahead of the central bank’s policy announcement.

The Philippine Stock Exchange index (PSEi) rose 1.22% or 77.47 points on Thursday to close at 6,390.58, while the broader all-stock index rose 0.78% or 27.12 points to close at 3,477 ,70.

“The PSEi maintained its gains for the fourth day in a row, driven by bargain hunters. At market close, it was just announced that the Bangko Sentral ng Pilipinas (BSP) would maintain its key policy rate at 6.5% in the meantime, which was in line with consensus expectations,” Regina Capital Development Corp. said. Head of Sales Luis A. said Limlingan in a Viber message.

The BSP kept its key interest rate at a 17-year high of 6.5% for the sixth time in a row on Thursday, as expected by all fifteen analysts in a Business poll.

“Philippine stocks edged higher as investors closed their bets ahead of the latest inflation data, which will be released on Friday with the May PCE (personal consumption expenditure) price index. Investors hope the report will show easing price pressures, which could increase the likelihood that the Fed will cut rates later this year,” Mr Limlingan added.

“The local market rose as investors received positive signals from Wall Street overnight, amid upbeat expectations about the May US PCE inflation report, which will be released by the end of the week,” said Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said the same in a Viber message.

On Wall Street, the Dow Jones Industrial Average rose 15.64 points, or 0.04%, to 39,127.80; the S&P 500 gained 8.60 points, or 0.16%, to 5,477.90; and the Nasdaq Composite gained 87.50 points, or 0.49%, to 17,805.16, Reuters reported.

Investors are awaiting the release of the US PCE price index, the US Federal Reserve’s preferred inflation measure, on Friday. Economists polled by Reuters expect annual PCE growth to slow to 2.6% in May.

All sector indices closed higher on Thursday. Financial values ​​rose by 2.49% or 47.17 points to 1,934.55; industry and services rose by 1.06% or 94.63 points to 8,977.11; real estate rose by 0.92% or 22.97 points to 2,504.98; holdings rose 0.55% or 30.08 points to 5,501.71; services increased by 0.42% or 8.42 points to 1,986.56; and mining and oil rose 0.23% or 20.03 points to 8,554.89.

“Among the index members was Converge ICT Solutions, Inc. at the top, up 3.83% to P11.40. JG Summit Holdings, Inc. lost the most, falling 2.59% to P26.30,” said Mr. Plopenio.

Value turnover fell to P4.52 billion on Thursday, with 508.74 million shares changing hands from P4.96 billion, while 323.63 million shares were traded on Wednesday.

The decliners defeated the advanced ones, 99 versus 91, while 43 names remained unchanged.

Net foreign sales reached P96.3 million on Thursday, a reversal from the P84.58 million in net purchases recorded on Wednesday. — RMD Ochaaf of Reuters