PHILIPPINE STOCKS climbed to the 6,800 level on Tuesday as investor sentiment was boosted by the Bangko Sentral ng Pilipinas’ (BSP) projection of more interest rate cuts.
The Philippine Stock Exchange index (PSEi) gained 0.61% or 41.84 points to 6,803.19, while the broader all-share index added 0.32% or 12.48 points to 3,812.18.
“The local bourse managed to settle in the green but gains were trimmed as investors digested the latest statement from the BSP regarding rate cuts,” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a Viber message.
On Tuesday, BSP Governor Eli M. Remolona, Jr. said the central bank’s easing cycle is still under way, but they might opt to keep rates steady at their final policy meeting of the year on Dec. 19.
“We’re still in the easing cycle,” he told reporters. “Either we cut in December or we cut in the next meeting, but gradually.”
The BSP cut interest rates by 25 basis points for a second straight meeting on Oct. 16, bringing its benchmark rate to 6%, the lowest since February 2023. It will meet for the last time this year on Dec. 19.
“Investors continued to hunt for bargains as concerns over the prospects of protectionist trade policies in the United States subside,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“Robust third-quarter and nine-month corporate results also helped in the market’s climb,” he added.
Almost all of the market’s sectoral indices closed higher. Services rose 1.3% or 27.01 points to 2,102.87, while property went up 1.22% or 31.52 points to 2,609.57. Mining and oil gained 0.9% or 68.91 points to 7,702.66.
The industrials index added 0.86% or 81.29 points to 9,458.12, while financials inched up 0.81% or 18.12 points to 2,248.62. Holding firms declined 0.84% or 48.78 points to 5,739.87.
Value turnover shrank to P5.45 billion covering 783.36 million shares from P5.78 billion covering 695.71 million stocks on Monday.
Losers beat winners 111 to 85, while 63 stocks were unchanged. Net foreign selling slipped to P1.15 billion from P1.27 billion. — Revin Mikhael D. Ochave