PSEi climbs to 8,000 level on BSP decision

By Arra B. Francia, Reporter
THE MAIN INDEX advanced to the 8,000 level on Friday, riding on positive sentiment after the local central bank chose to keep interest rates steady in its policy meeting.
The 30-company Philippine Stock Exchange index (PSEi) jumped 0.73% or 58.7 points to close at 8,013.42 on Friday, marking its third straight session in positive territory. The broader all shares index likewise rose 0.5% or 24.52 points to 4,913.31.
“Local shares were still snapped up as the index flirted with the 8,000 level right after the BSP (Bangko Sentral ng Pilipinas) maintained its rates and a week before the quarter end close,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message.
The BSP left interest rates unchanged for a third straight meeting on Thursday, keeping rates within the 4.25-5.25% range. The key rate remains at its decade-high of 4.75%.
At the same time, the BSP also trimmed its inflation forecast to three percent from 3.1% previously due to the lower-than-expected February print. The central bank also sees inflation to continue slowing down for the rest of the year.
Papa Securities Corp. Sales Associate Gabriel Jose F. Perez meanwhile attributed the PSEi’s performance to the US Federal Reserve’s decision to keep rates unchanged during its own policy meeting from March 19-20.
“The market continued to surge to break past the psychological 8,000 level, still being driven by yesterday’s momentum from the Fed’s dovish comments the other day,” Mr. Perez said in an email on Friday.
Wall Street indices also got a lift from the Fed’s dovish comments. The Dow Jones Industrial Average gained 0.84% or 216.84 points to 25,962.51. The S&P 500 index jumped 1.09% or 30.65 points to 2,854.88, while the Nasdaq Composite index soared 1.42% or 109.99 points to 7,838.96.
Back home, mining and oil was the sole counter that declined, dropping 0.29% or 24.59 points to 8,339.61.
The rest went up, led by services which climbed 1.07% or 17.1 points to 1,608.71. Industrials firmed up 0.7% or 82.37 points to 11,737.38; holding firms surged 0.62% or 49.29 points to 7,944.05; property increased 0.57% or 23.59 points to 4,111.50; while financials added 0.4% or 7.18 points to 1,789.47.
Turnover improved to P7.61 billion after some 1.36 billion issues switched hands, significantly higher than Thursday’s P5.66 billion.
Foreign investors were upbeat on Friday as they recorded P1.45 billion in net purchases, ballooning from P147.01 million seen in the previous session.
Advancers outpaced decliners, 116 to 77, while 50 names were unchanged.