THE Philippine Stock Exchange index climbed on Monday, reflecting the positive performance of markets in the United States, alongside optimism for the local central bank to leave policy rates unchanged.

The main board soared by 0.74% or 59.45 points on Monday to end at 7,992.27.

The broader all-shares index likewise rose by 0.4% or 18.98 points to 4,753.36.

“Local shares traded higher feeding off US equities ending the session higher after posting a solid set of July jobs data,” Regina Capital Development Corp. Luis A. Limlingan said in a mobile phone message.

The Dow Jones Industrial Average continued its ascent beyond the 22,000 mark, as it added 0.3% or 66.71 more points on Friday to end at 22,092.81. Both the Nasdaq Composite Index and S&P 500 were also up, ending 0.18% higher to 6,351.56 and 0.19% to 2,476.83, respectively.

Index heavy weights SM Prime Holdings, Inc. and Ayala Land, Inc. (ALI) released their first-half earnings results on Monday, with both companies showing positive performances for the period. The Sy-led company booked a 15% increase in earnings to P7.79 billion in the second quarter, while ALI reported an 18% growth to P5.95 billion.

“The market is still on consolidation as it absorbs the earnings reports of index heavy weights… Ayala showed good results, so there’s positive outlook for the sector,” Diversified Securities, Inc. equities trader Aniceto K. Pangan said in a phone interview.

Mr. Pangan also noted that investors are anticipating the result of the Bangko Sentral ng Pilipinas (BSP) meeting this Thursday.

“Locally, BSP meets Aug. 10. We expect the BSP to leave policy rates unchanged, keeping the overnight reverse [repurchase] rate at 3% and the overnight deposit rate at 2.5%. However, we think that the reserve requirement ratio is likely to be cut as Governor [Nestor A.] Espenilla [Jr.] has indicated more space for monetary fine-tuning,” Regina Capital’s Mr. Limlingan said.


All sectors ended in the green, with holding firms leading the climb with a gain of 1.02% or 80.4 points to 7,961.51. The financial subindex followed, ending at 1,983.83, up by 0.72% or 14.63 points; services added 0.60% or 10.05 points to 1,668.83; mining and oil gained 0.48% or 61.85 points to 12,878.44; industrials rose by 0.18% or 20.45 points to 11,179.60; while the property sector added 0.01% or 0.6 point to 3,757.83.

A total of 1.40 billion issues changed hands for a total value turnover of P4.88 billion, lower than Friday’s P6.36 billion.

“As you can see the value turnover is below normal, it’s just around P4 billion. So there’s not much movement in the market,” Diversified Securities’ Mr. Pangan said.

Net foreign selling was logged at P40.82 million, reversing last Friday’s P18.11-million net purchases.

Despite a climb in the main index, decliners outpaced decliners, 99 to 88, while 59 issues were unchanged. — Arra B. Francia