PSEi back to 6,600 level on Wall Street gains

MANILA, Philippines — The Philippine stock market sustained its strength yesterday, returning to the 6,600 mark.

The benchmark Philippine Stock Exchange index (PSEi) closed at 6,621.88, up by 38.41 points or 0.58 percent.

The sectoral gauges were up as well with property and financials among the biggest gainers.

Total value turnover was thin at P4.8 billion and market breadth was positive, 100 to 88 while 49 issues were unchanged.

Mikhail Plopenio of Philstocks Financials said investors took positive cues from Wall Street overnight.

“The optimism kept the local bourse in the green territory for the whole session,” he said.

However, with a net market value turnover of only P3.55 billion, he noted that it remains to be seen whether or not the market will sustain its gains.

Elsewhere in Asia, shares mostly rose yesterday after Wall Street built on its all-time high reached last week, while Japan’s central bank kept its easy credit policy intact.

The Bank of Japan cited “extremely high uncertainties surrounding economies and financial markets at home and abroad” in saying it would continue its ultra-lax monetary policy, with its benchmark interest rate staying at minus 0.1 percent.

A policy statement also said the central bank would “not hesitate to take additional easing measures if necessary.”

Speculation that the BOJ would end the negative interest rate policy, put in place to spur spending and investment, has pulled the Japanese yen sharply lower. As of Tuesday morning, the US dollar bought 147.94 yen, down slightly from 148.11 yen late Monday.

On Thursday, the government will give its first estimate for how strongly the economy grew during the last three months of 2023.

Economists expect it to show the economy is still growing, but at a slower pace than during the summer. That’s what the Federal Reserve wants to see, because too strong of an economy would keep upward pressure on inflation.