Connect with us

Hi, what are you looking for?

News

Profit taking seen ahead of BSP policy meeting

BW FILE PHOTO

PHILIPPINE SHARES may move sideways this week as investors pocket gains from the market’s rise on Friday and await the Bangko Sentral ng Pilipinas’ (BSP) rate hike.

The benchmark Philippine Stock Exchange index (PSEi) gained 119.20 points or 1.93% to close at 6,286.77 on Friday, while the broader all shares index rose by 51.23 points or 1.56% to 3,328.89.

Week on week, the PSEi climbed by 101.24 points or 1.64% from its close of 6,185.53 on Nov. 4.

AB Capital Securities, Inc. Vice-President Jovis L. Vistan said in a Viber message that the PSEi rebounded on Friday as October US inflation was slower than expected.

“Stocks rebounded as investors reacted to the US inflation data. Prior to the inflation report, investors were also feted with a better-than-expected third-quarter GDP (gross domestic product) report,” Mr. Vistan said.

“The print … may be indicative that the Federal Reserve’s aggressive stance versus inflationary pressures is having its desired impact, and ultimately spark a pivot in the December meeting,” online brokerage 2TradeAsia.com said in a market note.

The US consumer price index (CPI) rose 0.4% last month. In the 12 months through October, the CPI increased 7.7%, slower than the 8.2% logged in September.

The US Federal Reserve hiked rates by 75 basis points (bps) for a fourth straight time earlier this month, bringing total increases since March to 375 bps. Its last meeting for the year is on Dec. 13-14.

Meanwhile, Philippine GDP grew by 7.6% in the third quarter, slightly faster than the revised 7.5% expansion in the preceding three-month period and 7% a year earlier.

For this week, Mr. Vistan said the PSEi’s positive momentum is expected to continue, but investors are also seen to pocket their gains from the market’s recent rally.

“The market will be jittery anew ahead of the expected Bangko Sentral ng Pilipinas (BSP) 75-bp hike set for [this] week and use it as an excuse to take some profits on the strong Philippine GDP growth-led rally on Friday, likely spilling over to early [this] week,” First Metro Investment Corp. (FMIC) Head of Research Cristina S. Ulang said in an e-mail.

BSP Governor Felipe M. Medalla earlier said the Monetary Board will hike benchmark interest rates by 75 bps at their Nov. 17 meeting to match the Fed’s latest move as it seeks to stabilize prices and support the peso.

The BSP has raised rates by 225 bps since May.

China Bank Securities Corp. Research Director Rastine Mackie D. Mercado likewise said investors are expected to book gains this week.

“While we believe that prospects of retesting immediate resistance levels remain on the table, it’s more likely that the market will take a breather [this] week,” Mr. Mercado said in an e-mail.

2TradeAsia.com put the PSEi’s support at 6,100 and resistance at 6,400 to 6,600, while FMIC’s Ms. Ulang placed support at 6,100 and resistance at 6,500. China Bank Securities’ Mr. Mercado said the PSEi’s support is pegged at 6,200 and resistance at 6,360-6,380. — A.E.O. Jose

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

UNSPLASH THE HOLIDAYS shouldn’t be used as an excuse to binge-eat, warned a dietitian.  Christmas is just around the corner and with it comes...

News

MANILA Electric Co. (Meralco) has secured a certificate of exemption from the Department of Energy (DoE) from the competitive selection process (CSP) for the...

News

UNSPLASH END-OF-LIFE CARE will benefit from conversations about spirituality and the limits of the human body, according to a priest.   “If we want to...

News

A SCENE from Giacomo Puccini’s opera Turandot in Turkey AFTER a two-year hiatus, live opera returns to the Main Theater of the Cultural Center...

News

CEBU AIR, Inc. (CEB) said recent leadership changes in the company form part of its succession planning as it seeks continued growth and to...

News

MASS HOUSING developer Ovialand, Inc. has secured a P600-million loan facility from Security Bank Corp. for its expansion plans. Ovialand said in a press...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.