Stocks extend climb amid cautious trading

MANILA, Philippines — Investors extended the local stock exchange’s winning streak, closing the week on a positive note, but sentiments that monetary easing is nearing its end are starting to creep in.

The benchmark Philippine Stock Exchange index (PSEi) yesterday expanded for the second straight trading session, gaining by 0.14 percent or 8.87 points to 6,390.91.

However, the broader All Shares index slid by 0.09 percent or 3.4 points to close at 3,584.43.

Regina Capital Development Corp. head of sales Luis Limlingan said investors have gobbled up more shares following the release of January inflation.

The inflation, or the general increase in goods prices, picked up by two percent in January, but it still fell within government target range.

Limlingan said investors are concerned that the Bangko Sentral ng Pilipinas may now stop cutting interest rates. From next week onward investors may take a wait-and-see mode until the BSP issues clearer directions on rate setting.

“Market trading remained cautious as investors assessed indications that the BSP’s rate cut cycle may be approaching conclusion, with inflation returning to BSP’s target range,” Limlingan said.

“Investors are waiting for further economic and policy clarity,” he added.

Sectors were mixed, with financials taking the lead with a 0.79-percent gain, while mining and oil recorded the biggest drop at 1.52 percent.

The PSEi saw P6.27 billion worth of shares change hands yesterday, with the losers beating the winners, 122 to 80, while 62 issues were unchanged.