The Philippine Stock Exchange index sustained its upward momentum Wednesday to close above the 6,300 level ahead of the Bangko Sentral ng Pilipinas (BSP) policy meeting.
The main composite index went up 14.06 points, or 0.22 percent, to close at 6,313.11, while the broader all-shares index added 9.49 points, or 0.28 percent, to finish at 3,450.58.
The Monetary Board of the BSP would meet Thursday to decide on its policy stance, with analysts expecting that it would maintain the interest rates for a sixth straight meeting amid the stubborn high inflation rate and weak peso.
Sectoral Indices ended mixed, with services increasing 0.86 percent, followed by industrial and property, which advance 0.63 percent and 0.22 percent.
Holding firms dropped 0.64 percent, while mining and oil lost 0.12 percent.
Value turnover reached P4.78 billion, as foreign investors remained net buyers, with net inflow reaching P60.72 million.
Analysts said the share buyback implemented by the listed firms also helped boost the market over the past three trading days.
They said while the index continued to rebound from last week’s sell off, the rise could be limited within the 6,400 to 6,200 level.
Meanwhile, Asian markets mostly rose Wednesday following a tech-led bounce on Wall Street as investors prepared for the release of crucial US inflation data, while the yen fell back towards levels that have stirred intervention warnings from Japanese officials.
The euro also remained under pressure ahead of weekend elections in France that polls suggest will see big wins for the far-right and left-wing parties pushing President Emmanuel Macron’s centrists into third.
With few catalysts to drive action, investors were jockeying ahead of Friday’s personal consumption expenditures index — the Federal Reserve’s preferred gauge of inflation — hoping a softer reading will allow the bank to cut interest rates soon.
Comments from two monetary policymakers Tuesday did little to lift hopes for a move anytime soon.
Fed governor Michelle Bowman warned: “We are still not yet at the point where it is appropriate to lower the policy rate.
“I will remain cautious in my approach to considering future changes in the stance of policy,” she said in prepared remarks.
Fellow governor Lisa Cook added that she saw inflation slowing this year, and even more so next, and that borrowing costs could come down “at some point”.
Their remarks were broadly in line with those of their bank colleagues, who have said they wanted to see more evidence that prices were under control before deciding to lower rates.
The Fed’s so-called “dot plot” guide for rates points to one cut before January — down from three predicted in March — though there is much debate on whether it will make two, or even none at all.
Equity markets have been well supported this year by an expectation that officials will ease policy after a long-running campaign against sticky inflation.
However, the rally is showing signs of petering out owing to a string of data indicating the US economy and labor market remain strong, while investors are also concerned valuations may have gone too far, particularly among tech firms.
On Tuesday, the Nasdaq and S&P 500 both recovered from a recent sell-off thanks to a bounce in AI chip titan Nvidia from three days of heavy selling.
Asian markets mostly rose after struggling in early trade.
Tokyo, Shanghai, Hong Kong, Seoul, Wellington, Mumbai, Manila, Taipei and Jakarta rose, while Sydney, Singapore and Bangkok fell.
London rose at the open, while Paris and Frankfurt both rose as well.
The uncertainty over US rates was keeping the dollar elevated, with the yen in focus as it approaches the level that forced Japan to step into forex markets earlier this year.
The country’s top currency official has said authorities were ready to act 24 hours a day if the unit fell too far. Billions was pumped in to support the yen when it hit a 34-year low of 160.17 in late April.
Traders are also poring over any comments from the Bank of Japan, which many say has been too cautious in moving away from its ultra-loose monetary policy.
It is tipped to hike interest rates next month and begin winding down its bond purchases that help keep borrowing costs down.
The euro held Tuesday’s losses before Sunday’s first round of legislative elections in France.
Macron called the snap polls after his centrists were trounced by the far-right National Rally (RN) in European Parliament elections two weeks ago.
There are fears that big wins for the RN and left-wing alliance could put France, Europe’s number two economy and key EU player, on course for a battle with Brussels over spending plans. With AFP
