Market gains more steam as BSP keeps rates steady

MANILA, Philippines — The local bourse maintained its unblemished record for the week as the market’s recent rally gained more steam following the results of the Bangko Sentral ng Pilipinas (BSP) meeting on Thursday.

The benchmark Philippine Stock Exchange index closed the week above the 6,400 level, extending its winning streak to five after rising by 0.33 percent or 21.33 points to 6.411.91.

Also ending in the win column was the broader All Shares index, which inched up by 0.26 percent or 8.96 points to settle at 3,486.66.

Claire Alviar of Philstocks Financial said the local bourse sustained its rally as investors digested the latest cues from the meeting of the BSP Monetary Board.

The central bank decided to keep interest rates steady, maintaining the benchmark interest rate at a 17-year high of 6.50 percent.

“Investors cheered the BSP’s signal of a possible rate cut by their August meeting, as well as its downward revision of the inflation forecast for this year and next year to 3.1 percent, within the government’s target of two to four percent,” she said.

Alviar said the market registered a strong net market value turnover at P5.92 billion, higher than the P4.4 billion average this month.

“Shares managed to stage another rally and close above the 6,400 to end the semester as investor rebalanced positions,” Luis Limlingan of Regina Capital said separately.

Most counters were in the green except for mining and oil as well as financials, which dropped 0.86 percent and 0.51 percent, respectively.

Holding firms emerged as the biggest gainer with a 0.93-percent jump.

Market breadth was positive as advancers crushed decliners, 109 to 85, while 52 issues did not change.

GT Capital Holdings posted the highest increase among index members at 7.83 percent, while Monde Nissin had the biggest decline at 2.79 percent.