STOCKS closed higher on Monday as a retreat in oil prices and bargain hunting lifted market sentiment, even as some investors chose to stay on the sidelines while waiting for the Bangko Sentral ng Pilipinas’ (BSP) policy meeting this week.
The Philippine Stock Exchange index (PSEi) went up by 0.26% or 15.20 points to close at 5,797.90, while the all shares index rose by 0.46% or 14.67 points to 3,233.48. This was the PSEi’s best finish in over three weeks or since it closed at 5,825.97 on Sept. 25.
The index opened Monday’s session at 5,821.74, up from Friday’s close of 5,782.70. It traded higher than Friday’s finish the entire day as its low was at just 5,796.18, while its high was at 5,830.19.
“The local bourse ended higher for the third consecutive session as investors positioned themselves ahead of the anticipated Mynt, Inc. initial public offering,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Mynt, the parent of e-wallet giant GCash, is set to debut on the stock market on Tuesday (Oct. 20).
“Market sentiment was further supported by a correction in crude oil prices, easing some concerns over inflationary pressures. However, investors remained cautious ahead of the Bangko Sentral ng Pilipinas’ interest rate decision on Thursday, with the outcome expected to provide further guidance on the monetary policy outlook,” Mr. Limlingan added.
A BusinessWorld poll showed 20 of 22 economists expect the Monetary Board to hike benchmark rates by 25 basis points (bps) for a fourth straight time at its meeting on Thursday to bring the policy rate to 5.25%.
Meanwhile, two analysts expect an increase of 50 bps amid growing inflation pressures.
The BSP has hiked borrowing costs by a total of 75 bps since it began its tightening cycle in April.
“The local market extended its gains as investors continued with their bargain hunting. The decline in global oil prices following US President Donald J. Trump’s waiving of new sanctions against Russia helped in today’s session. Despite the climb, the market was unable to get past the 5,800 resistance line,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
Four of six sectoral indices closed higher. Holding firms rose by 1.08% or 45.73 points to 4,298.56; financials increased by 0.77% or 13.85 points to 1,819.68; industrial went up by 0.57% or 42.32 points to 7,468.35; and mining and oil climbed by 0.21% or 40 points to 19,261.57.
Meanwhile, services dropped by 0.42% or 12.70 points to 3,035.53, and property edged down by 0.01% or 0.24 point to 1,807.75.
Advancers beat decliners, 99 to 67, while 81 names were unchanged.
Value turnover fell to P5.87 billion on Monday with 828.22 million shares traded from the P8.51 billion with 4.14 billion issues that changed hands on Friday.
Net foreign selling was at P70.66 million, a reversal of the P148.21 million in net buying recorded in the previous session. — Alexandria Grace C. Magno