SUSTAINS RALLY. The main equities index continues its rally on Wednesday (May 18, 2022) ahead of the policy-meeting of the Bangko Sentral ng Pilipinas' Monetary Board. The peso also kept its footing against the US dollar. (PNA file photo)
MANILA – The local stock barometer sustained its rally on Wednesday while the peso closed sideways against the US dollar ahead of the policy meeting of Bangko Sentral ng Pilipinas’ (BSP) Monetary Board (MB) on Thursday.
The Philippine Stock Exchange index (PSEi) jumped further by 2.02 percent, or 132.94 points, to 6,727.60 points.
All Shares followed with an increase of 1.60 percent, or 56.41 points, to 3,590.06 points.
Most of the sectoral gauges also tracked the main index namely Mining and Oil, 2.72 percent; Services, 2.70 percent; Holding Firms, 2.68 percent; Industrial, 2.41 percent; and Financials, 1.99 percent.
Only the Property index finished in the negative territory after it dipped by 0.60 percent.
Volume totaled 1.6 billion shares amounting to PHP7.75 billion.
Advancers led decliners at 134 to 60, while 45 shares were unchanged.
“Philippine shares were bought ahead of the BSP meeting and as investors digested the retail numbers that came in line with consensus expectations,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
He said the policy-making MB, on its third rate-setting meeting for this year, is expected to deliver a 25 basis points increase in the central bank’s key rates.
If this projection materializes, it will be the first increase following the 200 basis points cut in the BSP’s key rates in 2020, which was targeted to entice people to borrow to ensure that economic activities remain robust despite the pandemic.
Economists said the BSP has a leeway to start hiking its key rates following the higher-than-expected 8.3 percent growth, as measured by gross domestic product (GDP), in the first quarter of the year.
Overseas, the US’ Department of Commerce reported that April 2022 retail sales increased by 0.9 percent despite the acceleration of inflation to its 40-year high.
Meanwhile, the local currency finished the day at 52.45, little changed from its 52.425 finish on Tuesday.
It opened the day at a better level of 52.35 compared to its 52.45 start a day ago.
It traded between 52.35 and 52.465, bringing the day’s average of 52.422.
Volume totaled to USD805.9 million, lower than the previous session’s USD843.1 million. (PNA)
