Philippines share prices closed 0.4 percent higher on Wednesday due to gains in index heavyweight Philippine Long Distance Telephone and mining shares, dealers said. They said the rise in PLDT came after international credit rating agencies affirmed the company's foreign currency ratings, with a stable outlook.
The composite index added 14.63 points to 3,788.26 after moving between 3,769.17 and 3,802.42. The broader all-share index inched up 3.64 points at 2,345.06.
There were 56 advancers and 41 decliners, while 68 stocks were flat. Volume reached 2.6 billion shares valued at 5.9 billion pesos (135.9 million dollars).
Despite ending the range-bound session in positive territory, the market said the Philippine central bank may resist the temptation to cut key interest rates when it holds its policy meeting on November 15.
Local interest rates may be kept steady for the rest of the year despite benign inflation and the US Federal Reserve's further rate cut of 25 basis points last week, he said. But other analysts remain optimistic that a rate cut is still in store before the year ends.
"Inflationary pressures from fuel prices notwithstanding, we perceive the central bank will be biased to cut interest rates to reduce upward pressure on the Philippine peso," said Cem Karacadag, analyst at Credit Suisse. PLDT advanced 15 pesos to 3,045, off a high of 3,050. Among mining stocks, sector leader Philex Mining rose 25 centavos to 10.75 pesos.
A pullback in Globe Telecom capped the market's gains. The stock fell 10 pesos to 1,720. San Miguel A shares fell 1.50 pesos to 55.50. Its B shares were steady at 58 pesos.
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