Philippine stocks climb on index rebalancing

MANILA, Philippines — The Philippine stock market opened the week on a hopeful note yesterday with the benchmark Philippine Stock Exchange index (PSEi) closing 30.05 points or 0.49 percent higher at 6,172.84.

Likewise, the broader All Shares index rose by 8.20 points or 0.25 percent to settle at 3,325.15.

Luis Limlingan of Regina Capital said Philippine shares traded upward as volume activity was spurred by the latest index rebalancing and with funds gearing up for the quarter end rebalancing.

Total value turnover was negative with 89 losers and 85 gainers while 47 issues were unchanged.

All sectoral indexes were up except for mining and oil.

Across the region, stock markets were mixed yesterday as investors contemplated the possibility the Federal Reserve will hike interest rates again and keep them at three-decade highs with officials struggling to contain inflation.

Equities have come under pressure in recent weeks on bets that the US central bank will need to stick with its tightening bias well into next year as prices remain well above target, while the economy and labour market remain in rude health.

Comments from monetary policymakers will be pored over in the coming days, with traders hoping for some insight into their thinking as speculation grows that borrowing costs will be lifted again before the end of the year.

Last week, Boston Fed chief Susan Collins warned another increase “is certainly not off the table,” while Governor Michelle Bowman suggested more would likely be needed.

The prospect of higher rates – and fewer cuts than hoped next year –dented sentiment on trading floors, and dragged all three main US indexes into the red Friday.

A recent spike in oil prices to 10-month highs above $90 a barrel is adding to the headache for central bankers, with observers warning the commodity could push above $100 owing to an output cut by Saudi Arabia and Russia.