Budget focus sends stocks up for 3rd day

  MANILA, Philippines — The main stock index closed higher for a third day as positive developments in the national budget hearings lifted investors sentiment.

  The Philippine Stock Exchange index or PSEi ended at 7,419.10, up 17.94 points or 0.24 percent, while the broader All Shares index slipped to 3,935.54, down 2.10 points or 0.05 percent.

  “The 2022 national budget is targeted to be approved on third and final reading by the Senate next week and the validity of the 2021 national budget is likely to be extended until 2022,” said Japhet Tantiangco of Philstocks Financial.

  “The PSE index again surged at the close and recovered from early losses as investors remain optimistic on the prospects of economic reopening,” AB Capital Securities added in a commentary.

  Net value turnover reached P8.13 billion. Market breadth, however, was negative as losers outnumbered gainers, 93 to 88, while 53 issues were unchanged.

  Around Asia, shares mostly fell as worries about inflation set off expectations the US Federal Reserve might move faster than anticipated to raise interest rates.

  “Markets continue to shift their expectations toward a tighter Fed monetary policy,” said Yeap Jun Rong, a market strategist at IG, adding that investors will be watching for US data to be released later in the day.

  The Fed will release minutes from its October policy meeting, potentially giving investors more details on the central banks plan to start trimming bond purchases that have helped keep interest rates low.

  Investors have been watching to see if pressure from rising inflation will goad the Fed into speeding up its plans for trimming bond purchases and raising its benchmark interest rate.

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