PHILIPPINE share prices recovered from marginal dips on Thursday as investors discounted indications from the US Federal Reserve that interest rates could rise in June.
April Tan, research head of COL Financial, said US Fed’s indication to hike rates next month was “already priced in. Market impact should be neutral,” she said.
Fears about the possibility of martial law nationwide were also dismissed by the market.
“That martial law is not anymore… something that is being considered by the market as scary or something that is essential to the investing public,” Summit Securities Inc. President Harry Liu said.
“I think the market is just showing already whatever the president has written, that this would be for the protection of the country more than something that is to be negative about,” he added.
Regina Capital Corp. Managing Director Luis Limlingan said the Philippine market went along with Asian counterparts as minutes from Federal Open Market Committee (FOMC) meeting early this month downplayed the weak first quarter gross domestic product and the March inflation data.
Most participants judged that it would soon be appropriate for the FOMC to hike rates again, Limlingan noted.
The FOMC minutes pointed to a hike as soon as the Fed’s meeting on June 14.
The bellwether PSEi rose by 0.43 percent or 33.83 points to close at 7,871.65. The wider All Shares increased by 0.47 percent or 21.90 points to 4,693.39.
Most sectoral indices were in the red, led by Industrials (-0.34 percent), Holding Firms (-0.18 percent), Financials (-0.10 percent) and Mining and Oil (-0.10 percent). The Property index was up 1.05 percent, and Services gained 3.26 percent.
Among the actively traded issues PLDT Inc. went up 6.38 percent, Bloomberry Resorts Corp. rose by 5.66 percent, AyalaLand Inc. gained 2.44 percent and GT Capital Holdings Inc. was up 1.27 percent.