Stocks rebound ahead of BSP meeting, GDP data

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The Philippine Stock Exchange — PHOTO BY SANTIAGO J. ARNAIZ

By Arra B. Francia, Senior Reporter

LOCAL EQUITIES bounced back on Wednesday, taking cues from the recovery of world markets as well as the series of economic data to be released on Thursday.

The 30-company Philippine Stock Exchange index (PSEi) surged 1.94% or 150.64 points to 7,917.39. The broader all-shares index likewise climbed 1.33% or 63.50 points to 4,827.41.

“Investors took some bets ahead of the GDP (gross domestic product) announcement, BSP (Bangko Sentral ng Pilipinas) meeting and the release of the MSCI rebalancing,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message.

The Philippine Statistics Authority will release official GDP data for the second quarter on Thursday morning, while the BSP will have its Monetary Board meeting after the market’s close in the afternoon.

A BusinessWorld poll of 16 analysts last week showed expectations of a 25-basis-point rate cut during the Thursday meeting on the back of slowing inflation.

The local bourse followed the positive sentiment in international markets after China’s central bank said it planned to keep the yuan at a stronger level. This followed the United States’ statements calling China a “currency manipulator.”

The Dow Jones Industrial Average recovered 1.21% or 311.78 points to 26,029.52. The S&P 500 index gained 1.30% or 37.03 points to 2,881.77, while the Nasdaq Composite index went up 1.39% or 107.23 points to 7,833.27.

Papa Securities Corp. Sales Associate Gabriel Jose F. Perez, meanwhile, noted that the PSEi’s increase may have been technical as it was nearly oversold.

“The rally could have been technical in nature as the PSEi was already near the oversold territory with its RSI (relative strength index) indicator,” Mr. Perez said.

The PSEi outperformed most Asian indices, which were affected by the yuan’s weakness. Japan’s Nikkei 225 slipped 0.33% or 68.75 points to 20,516.56; the Shanghai Composite dropped 0.32% or 8.88 points to 2,768.68; while the Hang Seng index added 0.15% or 40.24 points to 26,016.48.

Back home, the mining and oil counter was the sole loser, dropping 0.34% or 27.39 points to 8,002.92.

The rest went up, led by financials which soared 4.03% or 71.95 points to 1,855.28. Holding firms jumped 1.9% or 144.01 points to 7,712.05; property rose 1.33% or 54.89 points to 4,180.17; industrials added 0.14% or 15.46 points to 10,961.64; and services went up 0.13% or 2.09 points to 1,563.93.

Some 550.02 million issues valued at P6.64 billion switched hands, lower than Tuesday’s P9.71 billion.

Advancers trumped decliners, 112 to 75, while 60 names ended flat.

Foreign investors were net sellers for the third straight session at P342.5 million, albeit lower than the previous session’s P1.68 billion.