Philippine shares close higher on BSP rate hike

Share prices on the Philippine Stock Exchange extended their winning streak on Thursday as investors took advantage of cheaper stocks in light of expectations that the central bank will go for another rate hike.

The benchmark PSEi gained 29.51 points or 0.43 percent to 6,952.59 at the closing bell. The broader All Shares increased by 12.63 points or 0.30 percent to 4,254.87.

“Investors continued to take positions ahead of the BSP's policy decision as some stocks were still at bargain levels,” Philstocks Financial Inc. research analyst Japhet Tantiangco said.

The Bangko Sentral ng Pilipinas’ policy-setting Monetary Board raised key policy rates by another 25 basis points during its meeting Thursday. The announcement came an hour after the market closed.

The Monetary Board has so far raised interest rates five times this year for a total of 175 basis points.

“Corporate earnings so far were mixed. Still some delivered strong third quarter/nine-month results giving hope to the market,” Tantiangco said.

Foreign funds bought P3.860 billion shares and sold P3.882 billion for a net selling position of P21.498 million.

“We also saw big policy decisions from the government such as the Malacañang giving a go signal on oil tax hike suspension and the Senate approving the Rice Tarrification bill. This was welcomed by investors as it can help in inflation mitigation,” Tantiangco noted.

More than 779.116 million shares valued at P6.509 billion, changed hands. Advancers led decliners, 90 to 89, and 48 issues were unchanged. —VDS, GMA News