Local shares rose Monday, tracking Asian markets’ movement, following the strong performance of US equities on Friday.
Philstocks Financial Inc. research analyst Claire Alviar said the renewed optimism the Bangko Sentral ng Pilipinas would lower interest rates by the second half of the year boosted investor sentiment.Net market value turnover reached P5.05 billion. Foreign investors were net sellers by P248.1 million.
The multibillion-dollar plan, as well as an easing of deposit requirements for buyers, fueled optimism for the outlook on the world’s number-two economy, which has been hobbled by the property crisis. “We believe the swift introduction of the policy package with arguably limited implementation details also implies the central government’s increasing urgency to alleviate the downward spiral of the property sector.”
Investors are now looking forward to the release Wednesday of minutes from the Federal Reserve’s May policy decision, hoping for some insight into the thinking of decision-makers. “There is also the risk that the loosening in financial conditions since late last year and additional fiscal stimulus could add momentum to demand, stalling any further progress or even causing inflation to reaccelerate.