THE Philippine Stock Exchange index (PSEi) closed on a positive note Friday as investors were relieved that the Bangko Sentral ng Pilipinas kept key interest rates unchanged.
The benchmark index gained 0.53 percent or 40.14 points to 7,622.05. The All Shares climbed 0.45 percent or 19.52 points to 4,358.66.
“The market went up today as interest rates were unchanged by the BSP,” Gerald Tan, equity trader at Papa Securities Inc., said in a text message.
The BSP also lowered it inflation forecast to 2.1 percent this year from 2.3 percent.
“I think the market will continue to range from 7,400 to 7,700 points in the next month,” said Tan.
This optimism over a possible resolution of the Greek debt debacle.
“The market just showed optimism toward the weekend meeting between Greece and the EU [European Union]… But the EU markets just appeared to be more pessimistic so far,” said Regina Capital Development Corp. equity analyst Jason Bibit.
“Moving forward, it appears there are more headwinds for Greece. It turns out it is due to repay a €3.9billion bond held by the ECB [European central bank] on July 20, which makes it a greater concern than the IMF [International Monetary Fund] debt. This issue may linger for a few more weeks,” he added.
Bibit noted the market may to stick close to the 7,600 level despite the persistence of volatility. The PSEi “would probably move sideways between 7,540 and 7,700 next week.”
More than 889.46 million shares amounting to P6.15 billion were traded.
Decliners outnumbered advancers, 91 to 84, while 39 issues were unchanged.