By Arra B. Francia, Senior Reporter

THE MAIN INDEX firmed up on Tuesday despite moving sideways for most of the session as investors remained cautious ahead of several central bank meetings this week.

The 30-member Philippine Stock Exchange index (PSEi) climbed 0.16% or 13.05 points to close at 7,922.04, snapping a two-day decline. The broader all- shares index likewise eked out gains of 0.05% or 2.78 points to 4,845.50.

“Our index managed to close slightly higher than [Monday]’s close as investors stay cautious by selling when the PSEi goes above 8,000 and hunt bargains when it pulls back,” Timson Securities, Inc. Equity Trader Jervin S. de Celis said in a mobile phone message.

“Market players will be watching the announcements of three central banks that will be released on Thursday (US Federal Reserve, Bank of Japan, Bangko Sentral ng Pilipinas) and this could be the reason why the PSEi has been struggling to stay above the 8,000 level.”

The Federal Open Market Committee will conclude its two-day policy meeting on Wednesday, June 19, while the Bank of Japan is holding its own review on June 19-20.

Meanwhile, the Bangko Sentral ng Pilipinas’ (BSP) Monetary Board is also set to meet this Thursday, June 20. Six out of 10 economists in a BusinessWorld poll expect the Monetary Board to keep key interest rates steady, while the rest are projecting a 25-basis-point reduction.

“If the BSP cuts interest rates on Thursday, I guess that will bolster the risk appetite of investors in the local market and the PSEi may finally be able to break out of 8,100 level,” Mr. De Celis said.

Papa Securities Corp. Sales Associate Gabriel Jose F. Perez also attributed the market’s performance to the upcoming Fed and BSP central bank meetings.

“The index could still continue to consolidate until we get word from the two aforementioned central banks on what their decisions would be. Until then, support remains around 7,830 (May 22’s high and recent breakout point),” Mr. Perez said in an e-mail.

Sectoral indices were equally split between advancers and losers. Holding firms led those in positive territory after it jumped 0.75% or 56.74 points to 7,551.10. Industrials racked up 0.59% or 69.15 points to 11,661.09, while services added 0.48% or 8.10 points to 1,678.89.

In contrast, property slumped 0.74% or 31.99 points to 4,262.56. Financials dropped 0.5% or 8.75 points to 1,714.93, while mining and oil shed 0.19% or 14.20 points to 7,119.37.

Turnover stood at P7.96 billion after some 1.66 billion issues switched hands, higher than the previous session’s P5.02 billion.

Foreign investors turned net buyers on Tuesday with P173.55 million, compared to Monday’s net outflow of P587.43 million.

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