THE local stock barometer climbed back to the 7,900 mark on Monday as last week’s pullback spurred selective bargain-hunting.
The main-share Philippine Stock Exchange index gained 61.53 points or 0.78 percent to close at 7,943.75, tracking upbeat regional markets.
“PSEi’s ebullient run-up of 7.8 percent in April and May suggests short-term correction, especially in the light of the usually weak months of July and August. However, the positive sentiment, especially among foreign investors, in the light of the approval of the first package of the Comprehensive Tax Reform Program (in the Lower House) and the “Build-build-build” plan move to improve infrastructure, will provide the market sufficient fuel to retain a positive outlook for the rest of the year,” First Metro Investments Corp. and University of Asia and the Pacific said in a joint research note.
The local market resumed its bargain-hunting mode after the sharp selldown last week, said Luis Gerardo Limlingan, managing director at Regina Capital Development.
“With various regional central banks discussing their later monetary policy, attention is now shifting focus to our own BSP (Bangko Sentral ng Pilipinas), which will meet later in the week.
Many are expecting the BSP to leave policy rates unchanged, keeping the overnight reverse repo (repurchase) rate at 3 percent, the overnight deposit rate at 2.5 percent, and the reserve requirement ratio at 20 percent,” Limlingan said.
Domestic investors supported the stock market as foreign investors were net sellers. There were net outflows of P165.86 million for the day.
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