October 19, 2024 | 12:00am
MANILA, Philippines — The local stock market has ended the week on a high note by halting its two-day slide, staying in the 7,400 level on optimism that companies would report higher profits in the third quarter.
The benchmark Philippine Stock Exchange index (PSEi) yesterday went up by 0.21 percent or 15.4 points to close at 7,415.73, snapping a two-day slump dragged by overseas risks.
Moreover, the broader All Shares index gained by 0.13 percent or 5.28 points to settle at 4,081.52, showing investor trust that the upcoming earnings season would prove bountiful.
Regina Capital Development Corp. head of sales Luis Limlingan said investors closed the week on a positive note, as they expect their bets to report higher than expected profits like the Bank of the Philippine Islands.
The Ayala-led bank has turned in a record profit of P48 billion as of September.
Rizal Commercial Banking Corp. chief economist Michael Ricafort attributed the upbeat close to the commitment of the Bangko Sentral ng Pilipinas (BSP) to further ease policy rates.
The BSP is open to cutting rates by as much as 100 basis points next year, if market conditions permit.
So far the BSP has slashed interest rates by 50 basis points, bringing down the benchmark rate to six percent from a 17-year high of 6.50 percent.
However, Limlingan said investors next week may start looking overseas, especially in the US, to get insights on how the US Federal Reserve would respond to its local inflation.
Similarly, the US is closing in on the day its constituents would head out to the ballots to choose between retaining Democratic leadership or reelecting higher tariffs advocate Donald Trump.
The PSEi saw P6.36 billion worth of shares change hands, as the winners beat the losers, 103 to 91, while 62 issues were untouched.
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