Stocks rose for a second day, ahead of Wednesday’s policy decisions by the Bank of Japan and the US Federal Reserve.
The Philippine Stock Exchange index, the 30-company benchmark, climbed 95 points, or 1.3 percent, to close at 7,671.72 Tuesday. This pushed up the total gains this year to 10.4 percent.
The heavier index, representing all shares, picked up 21 points, or 0.5 percent, to settle at 4,563.55 on a value turnover of P6.4 billion.
Advancers outnumbered gainers, 107 to 72, while 48 issues were unchanged.
Seventeen of the 20 most active stocks ended in the green, led by port operator International Container Terminal Services Inc. which advanced 5.5 percent to P82 and Semirara Mining and Power Corp. which gained 4.8 percent to P114.20.
Infrastructure conglomerate Metro Pacific Investments Corp. rose 4.1 percent to P6.90, while GT Capital Holdings Inc., the investment company of tycoon George Ty, added 3.4 percent to close at P1,458.
Meanwhile, Asian stocks markets drifted Tuesday and the dollar was virtually unmoved with investors biding their time as crucial central bank gatherings in the United States and Japan kick off.
The Fed heads into one of its most keenly awaited policy meetings after weeks of speculation that has fanned volatility across global trading floors, with investors split on whether it will lift interest rates.
At the same time opinion is divided on what the Bank of Japan’s intentions are, with expectations for fresh stimulus tempered by a lack of concrete promises from Tokyo, despite weak growth and almost non-existent inflation.
The uncertainty leading up to the meeting is keeping traders at bay, Chris Weston, chief market analyst in Melbourne at IG Ltd, said.
“No one is prepared to take on too much risk ahead of the Bank of Japan and the Fed Open Market Committee meetings,” he told Bloomberg News.
Tokyo’s Nikkei index swung to and fro through the day before ending 0.2 percent lower.
Hong Kong shed 0.1 percent by the close and Shanghai lost 0.1 percent following healthy gains Monday. Sydney added 0.2 percent and Seoul was 0.5 percent higher, while Singapore shed 0.2 percent.
In early European trade London fell 0.2 percent, Frankfurt was flat and Paris fell 0.3 percent.
Currency markets were also subdued ahead of the bank announcements, which are due Wednesday.
The dollar edged down to 101.70 yen from 101.88 yen in New York while the euro was at $1.1185 from $1.1175.
Sterling bought $1.3055 compared with $1.3028.
“It’s not unusual for traders to adopt a more cautious approach ahead of these events, particularly when we have two on the same day, both of which have the potential to create huge amounts of volatility in the markets,” said Oanda senior market analyst Craig Erlam in a note.
Oil prices turned lower again, digging into Monday’s gains as investors grow tetchy about the likelihood of a deal next week between OPEC and Russia aimed at addressing a global supply glut and overproduction.
West Texas Intermediate eased 19 cents to $43.11 and Brent dipped 16 cents to $45.79.
“A big part of the rally was the hope that a deal could be getting closer with agreement at the Algiers meeting potentially leading to another meeting,” said Greg McKenna, chief market strategist at CFD and FX provider AxiTrader. With AFP, Bloomberg