LOCAL SHARES recovered slightly on Tuesday, as investors anticipated the Bangko Sentral ng Pilipinas’ (BSP) monetary policy decision this week.

The bellwether Philippine Stock Exchange index (PSEi) climbed 0.33% or 26.43 points to close at 7,893.94 yesterday, snapping a five-day losing streak, while the broader all-shares index rose 0.2% or 9.73 points to 4,770.97.

Four of the six sectoral indices still ended in the red, although foreign investors shifted to buying mode after five consecutive trading sessions of net selling.

“The market is still trading sideways as the investors are on wait-and-see mode as they await the BSP decision on Thursday,” Unicapital Securities, Inc. Technical Analyst Cristopher Adrian T. San Pedro said via text.

Seven out of eight economists in a BusinessWorld poll late last week expect the Monetary Board (MB) to implement a 25-basis-point rate cut during its Sept. 26 meeting. BSP Governor Benjamin E. Diokno has repeatedly said since early last month that a reduction of such magnitude would be on the table in that meeting. If realized, this would be the third rate cut this year following 25-bp reductions in the MB’s May 9 and Aug. 8 meetings.

“Another thing to consider is the upcoming IPOs (initial public offerings) of Axelum Resources Corp. and AllHome Corp. which might zap the liquidity in the market as they begin their respective offer period,” Mr. San Pedro added.

Integrated coconut product manufacturer Axelum is currently undertaking the offer period of its P4-billion IPO, while Villar-led home supplies retailer AllHome will announce the final price for its P20.7-billion IPO on Sept. 26, Thursday, with its offer period to run from Sept. 30 to Oct. 4.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said that the market is on the lookout for more developments in the US-China trade war.

“Investors will be awaiting more developments as US Treasury Secretary Steven Mnuchin says that talks with China’s vice-premier (Liu He) will resume on Oct. 7,” Mr. Limlingan said in a mobile phone message.

Four sectoral indices ended in negative territory, led by mining and oil which lost 0.61% or 57.33 points to 9,217.90, followed by services which dropped 0.48% or 7.60 points to 1,559.21, industrials which shed 0.4% or 44.37 points to 10,810.96, while holding firms slumped 0.13% or 10.78 points to 7,825.44.

On the other hand, property climbed 1.61% or 64.96 points to 4,097.93 and financials edged 0.6% or 10.74 points up to 1,794.88.

Tuesday saw 899.97 million shares worth P8.50 billion changed hands, compared to Monday’s 3.35 billion shares worth P5.86 billion.

Stocks that declined still outnumbered those that advanced 122 to 80, while 54 others ended flat.

Foreign investors turned net buyers on Tuesday with P111.09 million, turning around from the previous session’s net outflows of P811.60 million. — Arra B. Francia

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