PHL stocks edge up ahead of BSP policy meeting

By Alexandria Grace C. Magno, Reporter

PHILIPPINE STOCKS inched higher on Tuesday, with investors largely staying on the sidelines ahead of the Bangko Sentral ng Pilipinas’ (BSP) policy meeting and amid lingering uncertainty over the US-Israel war on Iran.

The benchmark Philippine Stock Exchange Index gained 0.04% or 2.67 points to close at 6,018.7, while the broader all-share index added 0.15% or 5.09 points to finish at 3,387.53.

Market sentiment remained cautious, with investors closely monitoring developments surrounding the Middle East war, particularly the fragile cease-fire between the US and Iran.

Hopes that both sides could still reach a deal before the truce expires helped keep the market in positive territory, though gains were limited by risk aversion.

“Sentiment was stable as the market looked for updates on the unclear status of peace talks, which continued to limit risk appetite,” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a Viber message.

He added that investors are maintaining a wait-and-see stance ahead of the central bank’s policy decision.

Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco noted that while optimism over possible diplomatic progress supported equities, cautious positioning persisted due to lingering risks from the war.

Focus is also squarely on the BSP’s April 23 policy review, where analysts are divided but leaning toward a rate hike as inflation risks build.

BSP Governor Eli M. Remolona, Jr. earlier said the central bank has room to raise interest rates to temper price pressures stemming from elevated oil prices linked to the Middle East crisis.

A BusinessWorld poll showed that 11 of 19 analysts expect the Monetary Board to raise the benchmark rate by 25 basis points to 4.5%, potentially marking the BSP’s first tightening move since October 2023.

The central bank has said it is closely watching core inflation and the impact of rising prices on lower-income households.

Sectoral performance was mixed, with four of six indexes closing higher. Holding firms led the gains, climbing 1.04% to 4,677.37, followed by industrials, which rose 0.89% to 8,894.59. Mining and oil added 0.63% to 18,164.97, while financials edged up 0.37% to 1,906.16.

On the other hand, services declined 1.35% to 2,743.44, while property dropped 0.46% to 1,990.8.

Among individual stocks, JG Summit Holdings, Inc. posted the biggest gain, rising 5.95% to P28.50. Ayala Land, Inc. was the top decliner, falling 2.12% to P16.60.

Market breadth was positive, with 106 winners outpacing 90 losers, while 76 stocks were unchanged. However, trading activity slowed, with value turnover dropping to P6.91 billion from P7.17 billion in the previous session.

Foreign investors remained net sellers, though outflows eased to P311.95 million from P446.83 million a day earlier, reflecting continued caution among offshore funds.