Stocks eke out gains ahead of BSP policy review

LOCAL EQUITIES saw an uptick on Tuesday as investors remained on the sidelines ahead of the Bangko Sentral ng Pilipinas’ (BSP) policy meeting and other developments overseas.

The bellwether Philippine Stock Exchange index rose 0.09% or 6.74 points to 7,323.31.

The broader all shares index edged up 0.02% or 1.03 points to 4,405.37.

“It’s just a last-minute sell-off but managed to end flat... Investors stay on the sideline ahead of BoJ (Bank of Japan) and [the Philippines’] central bank meeting on Thursday,” said Joylin F. Telagen, equity research analyst at IB Gimenez Securities in a text message on Tuesday, noting that the index will likely consolidate in the 7,250 to 7,200 level as it awaits market-moving news.

The BoJ will release the minutes of its January meeting today, while the BSP’s policy- setting Monetary Board holds its review tomorrow.

Ms. Telagen added that with the start of Wilcon Depot, Inc.’s initial public offering, the market is starting to see a rebalancing of fund to “much more” attractive stocks.

“Our local market shrugged off an anemic performance from the US, which struggled for traction before they closed narrowly mixed in a marginally more defensive tone,” said Luis A. Limlingan, managing director at Regina Capital Development Corp., in a text message on Tuesday.

Wall Street drifted lower on Monday as investors worried that President Donald J. Trump’s plan to cut taxes and boost the economy could take longer than previously expected.

The Dow Jones Industrial Average inched down 0.04% to end at 20,905.86 points, while the S&P 500 lost 0.20% to 2,373.47. The Nasdaq Composite edged up 0.01% to finish at 5,901.53 after briefly hitting an intraday record high.

Back home, the services counter rose 0.65% or 9.69 points to 1,498.41; financials climbed 0.14% or 2.71 points to 1,848.65; and property inched up 0.03% or 1.11 points to 3,251.77.

Meanwhile, mining and oil fell 0.10% or 12.45 points to 11,933.74 and industrial dropped 0.02% or 2.92 points to 11,015.93. Holding firms dropped 0.21 point to 7,347.80.

Decliners equaled advancers at 98 while 46 issues were unchanged.

Value turnover stood at P7.67 billion, higher than Monday’s P7.03 billion, as 1.39 billion shares changed hands.

Foreigners turned buyers yesterday, with net purchases totaling P77.80 million, a turnaround from the net outflow of P929.52 million recorded last Monday.

Most Southeast Asian stock markets also rose on Tuesday, in line with Asian peers on the prospects of a less hawkish US Federal Reserve policy trajectory.

Expectations that the Fed will have to step up rate hikes to counter inflationary pressure from Mr. Trump’s stimulus are also waning after the US central bank dropped no hints of an acceleration in credit tightening last week. J.C. Lim with Reuters