Local stocks rise on recovery plan, BSP decision
SHARES rose on Thursday following the approval of an executive order outlining a 10-point agenda for the economy’s recovery and the Bangko Sentral ng Pilipinas’ (BSP) decision to keep benchmark interest rates steady.
The benchmark Philippine Stock Exchange index (PSEi) gained by 73.18 points or 1.04% to close at 7,082.61 on Thursday, while the broader all shares increased by 34.60 points or 0.92% to 3,759.35.
“The local bourse rose this Thursday amid hopes that the Philippine economy’s recovery would remain strong despite headwinds from offshore. Strong economic recovery hopes were backed by the newly approved Executive Order (EO) No. 166 which is seen to give emphasis on stronger pandemic countermeasures and further reopening of the economy,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber mes-sage.
President Rodrigo R. Duterte on Monday signed EO No. 166, a 10-point policy agenda aimed at accelerating the economy’s recovery from the pandemic. The order places emphasis on strengthening the country’s healthcare capacity and accelerating the coronavirus disease 2019 vaccination program.
“Investors turned into bargain hunters as [they] took bets ahead of the Monetary Board meeting later this afternoon. Recall that BSP chief Benjamin E. Diokno said that the regulatory body doesn’t see the need to follow the Fed’s pace in raising the policy rate, underscoring the notion that the benchmark rate will be left untouched, even as the war in Ukraine drags on,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
The BSP Monetary Board at its meeting on Thursday kept rates steady as expected to support the economy despite inflation risks caused by rising commodity prices due to the war between Russia and Ukraine.
“The market was up due to the rebound of telecommunications and consumer names. Consumer names were among the under-performers this year due to rising commodity prices; they will be among the most hurt. Telcos are [also] expected to be main beneficiaries of the amended Public Service Act,” COL Financial Group First Vice-President April Lynn C. Lee-Tan added in a Viber message.
Majority of sectoral indices ended in the green except for property, which fell by 17.83 points or 0.53% to 3,345.35 and financials, which dropped by 0.13 point to 1,654.26.
Meanwhile, mining and oil climbed by 608.02 points or 4.92% to 12,954.99; holding firms rose by 148.83 points or 2.25% to 6,757.31; services improved by 30.97 points or 1.65% to 1,908.13; and industrials went up by 87.49 points or 0.92% to 9,532.64.
Value turnover increased to P7.83 billion with 15.09 billion shares changing hands on Thursday from the P5.89 billion or 1.41 billion issues on Wednesday.
Advancers outnumbered decliners, 108 versus 64, while 58 names closed unchanged.
Net foreign selling grew to P797.92 million from the P734.65 million seen the previous trading day. — L.M.J.C. Jocson
