Phl stocks climb on bargain hunting
MANILA, Philippines - Bargain hunting kicked in yesterday, pushing the benchmark index higher despite sharp decline in Wall Street and increase in local key interest rates.
The Philippine Stock Exchange index (PSEi) rose 0.43 percent or 29.41 points to 6,894.23, while the broader all shares index gained 0.27 percent or 11.13 points to 4,123.69.
“There was bargain hunting. Investors took advantage of the PSEi’s decline at 6,800,” Freya Natividad, investment analyst at Papa Securities, said profit takers dictated the trading yesterday. The bellwether index hit an intraday low of 6,800.16.
“Investors also shrugged off the policy rate hike. Although sooner than expected, everyone is expecting a rate hike in the second half,” Natividad said.
The Bangko Sentral ng Pilipinas (BSP) on Thursday jacked up its key interest rates for the first time in more than one-and-a-half year.
The BSP’s Monetary Board raised by 25 basis points its overnight borrowing and lending rates to 3.75 percent and 5.75 percent, respectively. Both rates had been at record lows of 3.5 percent and 5.5 percent since October 2012.
In contrast, Wall Street declined heavily on Thursday following Argentina’s second debt default in 12 years and the release of the report on higher US labor costs.
The Dow Jones Industrial average lose 1.88 percent or 317.06 points to 16,563.3, while the broader Standard & Poor’s 500 index shed two percent or 39.4 points to 1,930.67.
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