Connect with us

Hi, what are you looking for?


Stocks rise as investors get bullish on economy


PHILIPPINE STOCKS inched higher on Thursday as investors were optimistic that the economy can absorb monetary tightening after the central bank delivered another large rate hike.

The Philippine Stock Exchange index (PSEi) went up by 11.65 points or 0.18% to 6,403.74 on Thursday, while the broader all shares index rose by 12.30 points or 0.36% to 3,388.60.

First Metro Investment Corp. Head of Research Cristina S. Ulang said the market ended higher as investors remain bullish on the country’s growth prospects.

“The PSEi closed in positive territory after the downswing in early trade largely, on emerging bets that the strong nine-month GDP (gross domestic product) growth of 7.8% will enable the domestic economy to absorb the aggressive interest rate hiking by the BSP (Bangko Sentral ng Pilipinas) with great resiliency,” Ms. Ulang said in an e-mail on Thursday.

A strong economy will also help companies achieve full financial recovery by next year, she added.

Philippine GDP expanded by 7.6% in the third quarter, slightly faster than the 7.5% in the second quarter. This brought the nine-month average to 7.8%, already higher than the government’s 6.5-7.5% target for the year.

Meanwhile, the BSP on Thursday fired off an aggressive 75-basis-point (bp) rate hike, matching the US Federal Reserve’s latest move, as it seeks to stabilize prices and support the peso.

The central bank has now raised borrowing costs by 300 bps since May.

“Philippine shares bucked the trend ahead of the BSP meeting, while US markets tumbled yesterday in response to a weak outlook from retail chain target, as inflation pinches shoppers heading into the holiday season,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message on Thursday.

Philstocks Financial, Inc. Research Analyst Claire T. Alviar said shares went up as the geopolitical tensions between Russia and the North Atlantic Treaty Organization eased. 

“Investors also anticipated the 75-bp interest rate hike of the BSP,” Ms. Alviar added.

Sectoral indices were split on Thursday. Industrials gained 92.33 points or 0.99% to end at 9,421.77; property rose by 14.36 points or 0.51% to 2,823.79; and holding firms went up by 5.94 points or 0.09% to 6,101.77.

Meanwhile, financials declined by 3.62 points or 0.22% to 1,601.86; services went down by 2.66 points or 0.16% to 1,646.88; and mining and oil lost 12.66 points or 0.12% to end at 9,837.12.

Value turnover inched up to P7.3 billion on Thursday with 582.73 million shares changing hands from P7.23 billion with 968.99 million issues traded on Wednesday.

Advancers outnumbered decliners, 95 versus 83, while 48 names closed unchanged.

Net foreign selling stood at P1.23 billion on Thursday, a reversal of the P1.09 billion in net buying seen on Wednesday. — AEOJ

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!



BW FILE PHOTO THE PESO continued to strengthen against the dollar on Thursday following remarks from the US Federal Reserve chief that cemented market...


BW FILE PHOTO SHARES closed lower on Thursday on profit taking amid hints of slower rate hikes from the US Federal Reserve and inflation...


DA.GOV.PH THE government wants to keep its low-cost Kadiwa food outlets in operation until February or March, when it expects food inflation to ease,...


NGCP.PH THE National Grid Corp. of the Philippines (NGCP) issued a yellow alert over the Luzon grid on Thursday after five power plants experienced...


PHILIPPINE STAR/ MIGUEL DE GUZMAN SETBACKS to the education system will require remedies which are expected to cost P25 billion a year, just to...


By Luisa Maria Jacinta C. Jocson, Reporter THE Philippines placed 19th out of 120 countries in the Open Budget survey, which gauges the transparency...

You May Also Like


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...


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...


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...


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, 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.