THE LOCAL MARKET closed higher on Monday, sustaining its rally, as investors await the upcoming policy meeting of the central bank.
The 30-member Philippine Stock Exchange index (PSEi) climbed 35.19 points or 0.48% to close at 7,281.35, while the broader all shares index rose 19.78 points or 0.45% to end at 4,338.51.
Regina Capital Development Corp. Head of Sales Luis A. Limlingan said the local bourse closed higher as investors await the result of the policy meeting of the Bangko Sentral ng Pilipinas (BSP) on Thursday.
“The PSEi kick started the week as investors made bets ahead of the BSP meeting on Thursday and the continued Christmas rally,” Mr. Limlingan said in a mobile phone message.
The central bank is likely to keep its key policy rates at the record low levels on Thursday, as it considers the recent uptick in the country’s inflation rate, according to analysts.
A BusinessWorld poll last week showed all 15 analysts do not expect the Monetary Board to go for another rate cut at its seventh and final policy meeting for the year on Dec. 17.
The central bank has lowered policy rates by 200 bps this year.
AAA Southeast Equities, Inc. Research Head Christopher John Mangun credited the market’s climb to the lack of selling pressure at the start of trading.
“Trading today is a clear indication that investors remain confident with current conditions and are willing to hold positions for the longer term,” Mr. Mangun said in an e-mail on Monday.
“The US Food and Drug Administration’s approval of Pfizer and BioNTech’s COVID-19 vaccine also helped in extending gains this Monday,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a mobile phone message.
Meanwhile, Timson Securities, Inc. Head of Online Trading Darren Blaine T. Pangan said in a mobile phone message that the market sustained its rally despite foreigners turning net sellers.
Net foreign outflows reached P816.66 million, a turnaround from the net inflows worth P212.08 million on Friday.
Most of the sectoral indices at the PSE were gainers on Monday, with property being the sole decliner, going down 28.27 points or 0.76% to 3,690.96.
Financials improved 23.7 points or 1.59% to 1,510.30; mining and oil went up 104.96 points or 1.12% to 9,410.93; industrials increased 101.04 points or 1.07% to 9,521.96; services jumped 8.74 points or 0.57% to 1,542.3; and holding firms gained 37.44 points or 0.5% to 7,493.31.
Advancers bested decliners, 134 to 75, while 58 names ended unchanged.
Some 46.02 billion issues valued at P8.93 billion switched hands on Monday, down from the previous session’s 75.92 billion shares worth P9.89 billion.
“Immediate resistance may be placed at 7,500, while nearest support is pegged at 6,700,” Timson Securities’ Mr. Pangan said. — Revin Mikhael D. Ochave