Shares sustain rise on positive sentiment in Philippines

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Share prices continued to gain steam driven by the overnight performance of the US markets coupled with the positive sentiment brought about by hopes of a rate cut.

The Philippine Stock Exchange index closed higher for a second straight session yesterday, adding 0.42 percent or 27.23 points to settle at 6,556.66.

The broader All Shares index also rose by 0.39 percent or 13.82 points to end at 3,538.24.

'Philippine shares resumed their climb as the market inched closer to the 6,600 level, getting a boost from the overnight performance of the US,' Luis Limlingan of Regina Capital said.

Limlingan said stocks across the region have been bought up under the assumption that the Federal Reserve could start cut its benchmark interest soon.

On the local front, rate cut hopes were strengthened due to the dovish comments made by Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. which in turn helped boost share prices, according to Philstocks Financial research and engagement officer Mikhail Plopenio.

Among the sectors, only the financials as well as mining and oil were in the red as they fell by 0.77 percent and 0.14 percent, respectively.

Holding firms, meanwhile, led the charge with a 0.9-percent surge.

Market breadth was positive as advancers edged out decliners, 97 to 90, while 56 issues were unchanged.

Century Pacific Food posted the biggest gain among index members at 5.38 percent while BDO suffered the largest loss at 2.83 percent.

The share price of Dito CME of Davao-based businessman Dennis Uy, meanwhile, gained by 6.47 percent to P2.14 as the company responded to a reported plan for a foreign investors-led group to take a majority share in the company.

A source has told The STAR that Uy could be poised to give up his controlling stake in Dito CME in favor of a group backed by foreign investors.