MANILA, Philippines — The stock market continued its upward momentum to close the week on a high note despite the Bangko Sentral ng Pilipinas (BSP)’s decision to adopt a prudent pause by keeping interest rates steady.
Philippine Stock Exchange index concluded in the green for a fourth consecutive session yesterday, adding 33.05 points, or 0.41 percent, at 8,055.47.
The broader All Shares index likewise finished in positive territory as it rose 0.74 percent, or 36.43 points, to settle at 4,927.81.
Gabriel Jose Perez of Papa Securities said, “The index powered through in the afternoon and against the FTSE rebalancing to close up 33.05 points. It initially weakened in the morning which may have been due to the BSP’s decision against consensus expectations yesterday to hold rates.”
Regina Capital’s Luis Limlingan stated separately, “Heavier turnover as a result of the FTSE rebalancing drove investors to realign with their respective portfolios. In addition, these same investors made timely moves after all key central banks, including our own BSP, released their latest policy statements.”
Value turnover reached P9.36 billion on Friday.
All counters were in the green led by financials which jumped 0.78 percent and services which went up 0.68 percent.
Market breadth was positive as advancers crushed decliners, 109 to 86, while 49 were unchanged.
With the index holding above the 8,000 level, Perez stated it is still showing strength despite the FTSE outflows as it inches closer to the resistance at its recent high of 8,139.
“As long as price action holds above the support of 7,830, bias should be to the upside and a break above the aforementioned. Next resistance after this is at 8,200,” he concluded.