PSEi climbs on softer BSP outlook

MANILA, Philippines —Local stocks rebounded Tuesday as investors stayed optimistic that the Bangko Sentral ng Pilipinas (BSP) would temper policy tightening amid fresh growth data.

The benchmark Philippine Stock Exchange Index (PSEi) gained 0.60 percent, or 37.68 points, to close at 6,326.89.

READ: Anemic GDP seen to temper rate hikes

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Brokerage Philstocks Financial Inc. said investors drew optimism from expectations that the BSP could take a less aggressive stance on monetary policy following the latest gross domestic product (GDP) print.

Still, other market indicators showed that investors remained cautious as uncertainties surrounding the US-Iran situation and the Philippine economic outlook lingered.

Softer GDP boosts optimism

Meanwhile, Luis Limlingan, head of sales at Regina Capital Development Corp., said the softer second quarter GDP growth outlook eased concerns over additional monetary tightening.

“Investors responded positively, supporting selected gains across the market,” Limlingan said.

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Trading activity remained tepid, with net value turnover reaching P4.97 billion. Foreign investors, however, provided support to the market. They ended the session as net buyers, posting net inflows of P179.33 million.

Market breadth was slightly positive, with gainers edging out losers by seven issues.

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Among sectors, mining and oil led the advance after gaining 2.18 percent. Holding firms were the weakest, shedding 0.12 percent.

Jollibee Foods Corp. emerged as the day’s top index gainer, jumping 5.05 percent to P156 per share.

The fast-food giant rallied after reporting record second-quarter earnings, with net income attributable to equity holders of the parent company reaching P3.4 billion.

Semirara Mining and Power Corp., meanwhile, was the main index laggard. Shares plunged 6.14 percent to P18.04 each.

Moreover, analysts said the mixed market indicators reflected continued caution despite the PSEi’s advance, as investors weighed the country’s economic prospects against lingering external risks.

Likewise, the local market has been navigating uncertainty over the direction of monetary policy and geopolitical tensions, which could influence inflation, economic growth and investor sentiment in the coming months. /pai