Stocks end week in rally mode

Stocks continued to rise on the trading week’s end following the central bank’s decision to increase interest rates on Friday, May 11.
The local bellwether Philippine Stock Exchange index (PSEi) climbed 181.11 points or 2.39% to close at 7,752.11, the first time it sustained an increase this week.
The broader all shares index also grew 79.24 points or 1.71% at 4,709.15.
“Market continued to recover today after BSP (Bangko Sentral ng Pilipinas) increased its lending rates to mitigate the inflationary effects,” Diversified Securities, Inc. equities trader Aniceto K. Pangan said.
On Thursday, May 10, the Monetary Board raised key lending rates by 25 basis points, the first time it did since 2014. Overnight lending rate is now 3.75%, overnight reverse repurchase rate 3.25% and overnight deposit rate 2.75%.
BSP Governor Nestor A. Espenilla, Jr. said the increase is intended to temper the rising prices caused by inflation.
Mr. Pangan added the lower-than-estimated US inflationary data indicates the Fed will not drastically hike its lending rates, “thus favorable for the emerging markets such as the Philippines.”
Sectoral indices all fell in the green, led by holding firms which posted a 182.84-point increase or 2.41%, closing at 7,745.5. The mining and oil sector followed at 10,194.17, up by 118.79 points or 1.17%
Industrials advanced 108.21 points or 0.97% at 11,188.84, while property added 86.12 points or 2.38% at 3,693.37.
Financials inched up 47.81 points or 2.53% to close at 1,933.66, and services by 26.5 points or 1.74% at 1,545.92.
Five of the session’s top 10 gainers announced net income growth in their first quarter reports–Aboitiz Equity Ventures, Inc., Pacific Online Systems Corporation, Robinsons Land Corporation, Alliance Global Group, Inc. and Bloomberry Resorts Corporation.
Advancers outpaced decliners, 116-80, while 49 were unchanged.
Foreigners were buyers, recording a net of P571.15 million. — Denise A. Valdez