MANILA – Philippine stocks showed signs of recovery on Thursday as the Bangko Sentral ng Pilipinas (BSP) maintained steady interest rates following an off-cycle rate hike on October 26th. The Philippine Stock Exchange index (PSEi) gained 0.33 percent, closing at 6,191.48 points, while the broader All Shares Index also rose by 0.20 percent to 3,314.49 points.
The central bank’s decision came after an earlier off-cycle rate hike of 25 basis points and was accompanied by a slight reduction in the full-year 2023 inflation forecast from 6.2 percent to 6.1 percent. This move is seen as a positive step towards stabilizing the economy and managing inflation expectations.
The trading session ended with robust activity, as a total of 411.32 million shares were traded, worth P3.9 billion. Net foreign buying contributed significantly to the day’s performance, reaching P484.5 million.
Sectoral performance varied with financials leading the gains, up by 0.59 percent, followed by industrials which increased by 0.45 percent. However, mining and oil sectors did not share in the positive momentum, experiencing a decline of 0.34 percent.
BDO Unibank Inc., despite being the most actively traded stock of the day, saw its share price fall by 0.84 percent to P129.40.
The market’s recovery can also be attributed to broader Asian stock market gains ahead of key US inflation figures and high-level discussions at the Pacific Rim summit involving US and China leaders, which have been closely watched by investors for potential impacts on global trade relations.
Furthermore, investors are keeping an eye on economic indicators from China and Japan’s growth numbers to gauge the direction of regional economies amidst global uncertainties.
Stephen Innes from SPI Asset Management highlighted the significance of the first face-to-face meeting in a year between Chinese leader Xi Jinping and President Joe Biden, suggesting that this encounter could influence market sentiment across Asia.
The Philippine market’s performance on Thursday reflects a cautious optimism among investors as they navigate through economic data releases and geopolitical developments that have far-reaching implications on both local and international markets.
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