By Arra B. Francia, Senior Reporter

STOCKS continued to climb on Friday as investors repositioned their portfolios following the Financial Times Stock Exchange index (FTSE) rebalancing, alongside the Bangko Sentral ng Pilipinas (BSP) decision.

The bellwether Philippine Stock Exchange index (PSEi) rose 0.41% or 33.05 points to close at 8,055.47. The broader all shares index likewise advanced 0.75% or 36.43 points to 4,927.81.

“Heavier turnover as a result of the FTSE rebalancing drove investors to realign with their respective portfolios. In addition, these same investors made timely moves after all key central banks, including our own BSP released their latest policy statements,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message.

The BSP decided to keep rates steady in their June policy meeting after trading hours on Thursday, citing lower inflation and optimistic domestic growth prospects. The central bank also adjusted its inflation forecast downward to 2.7% from 2.9% in 2019 and 3% from 3.1% in 2020.

Philstocks Financial, Inc. also attributed the market’s performance to results of the latest BSP policy meeting.

“Last-minute buyers erased afternoon losses, lifting the PSEi to 8,055.47 amid steady interest rates,” the company said in a market note.

Regina Capital’s Mr. Limlingan added that sentiment was further boosted by the rally in regional stocks due to the possibility of a rate cut by the US Federal Reserve next month.

The Dow Jones Industrial Average jumped 0.94% or 249.17 points to 26,753.17, while the S&P 500 index surged 0.95% or 27.2 points to 2,954.18. The Nasdaq Composite index also firmed up 0.8% or 64.02 points to 8,051.34.

Asian stocks however failed to mirror Wall Street’s positivity due to weak manufacturing data from Japan. Nikkei 225 plunged 0.95% or 204.22 points to 21,258.64, while the Hang Seng index shed 0.27% or 76.72 points to 28,473.71. In contrast, the Shanghai Composite rose 0.50% or 14.86 points to 3,001.98.

All sectoral indices closed in positive territory back home. Financials gained 0.78% or 13.62 points to 1,756.86; services went up 0.68% or 11.55 points to 1,703.95; industrial added 0.62% or 72.39 points to 11,849.99; property rallied 0.47% or 20.01 points to 4,324.56; holding firms jumped 0.33% or 24.98 points to 7,693.30, while mining and oil was up 0.18% or 12.75 points to 7,304.10.

Turnover improved to P9.36 billion after some 752.29 million issues switched hands, compared to the previous session’s P6.74 billion.

Advancers outpaced decliners, 109 to 86, while 49 names were unchanged.

Foreign investors were net sellers for the third straight session at P143.98 million, lower than Thursday’s P588.08 million.

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