Manila: The local stock market gauge rebounded on Thursday as the Bangko Sentral ng Pilipinas (BSP) signaled that it may ease policy rates anew toward the fourth quarter of the year.
The Philippine Stock Exchange index (PSEi) rose 1.31 percent to 7,458.74, with All Shares improving by 0.98 percent to 3,978.10.
Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said Thursday’s closing is the PSEi’s highest level in more than two and a half years or since Feb. 9, 2022.
‘[This is] a day after BSP Governor [Eli] Remolona [Jr.] signaled a total of -0.50 local policy rate cuts for the rest of 2024 (-0.25 on Oct. 17, 2024 and another -0.25 on Dec. 19, 2024 rate-setting meetings),’ Ricafort said.
‘Earlier Department of Finance Secretary (Ralph) Recto signaled and reiterated a possible -0.50 local policy rate cut to match the Fed’s jumbo -0.50 rate cut on Sept. 18, 2024 and estimated that inflation could ease or improve further,’ he added.
Five out of six counters ended in the green territory
except for Mining and Oil, which declined by 0.34 percent to 8,743.01.
The biggest gains came from Financials counter, up by 2.59 percent to 2,384.69.
This is followed by Holding Firms, up by 1.07 percent to 6,328.70; Services, up by 0.94 percent to 2,255.78; Industrial, up by 0.83 percent to 9,821.05; and Property, up by 0.37 percent to 2,988.45.
Winners led losers at 111 to 80, with 61 counters left unchanged.
Meanwhile, the Philippine peso closed at 55.97 to the US dollar, shedding 0.09 from Wednesday’s finish of 55.88 to the greenback.
The local currency started the day weak at 56.05 from the last day’s kick-off at 55.95 before trading between 55.94 and 56.09.
The average level for the day stood at 56.02 to the dollar.
Trade volume decreased to USD1.37 billion from the previous trading volume of USD1.54 billion.
Source: Philippines News agency