Investors lifted the local market on Thursday, with the Philippine Stock Exchange Index (PSEi) rising by 1.31% to close at 7,458.74—its highest level in over two and a half years, or since February 9, 2022. The broader All Shares index also improved, gaining 0.98% to end at 3,978.10.
Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort attributed the market's optimism to signals from the Bangko Sentral ng Pilipinas (BSP) hinting at potential policy rate cuts in the fourth quarter of this year.
“[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 October 17, 2024, and another -0.25 on December 19, 2024, rate-setting meetings),” Ricafort said.
He added that Finance Secretary Ralph Recto had also reiterated the possibility of a -0.50 local policy rate cut to match the U.S. Federal Reserve’s substantial -0.50 rate cut on September 18, 2024, and forecasted that inflation could ease further.
Five out of six sectoral indices ended in positive territory, with only the Mining and Oil index declining by 0.34% to close at 8,743.01. The Financials index posted the most significant gains, climbing 2.59% to 2,384.69, followed by Holding Firms, which rose 1.07% to 6,328.70. Services increased by 0.94% to 2,255.78, Industrial advanced by 0.83% to 9,821.05, and Property edged higher by 0.37% to 2,988.45.
Overall, market sentiment remained positive, with winners outnumbering losers at 111 to 80, while 61 counters were left unchanged.
Meanwhile, the Philippine peso closed at 55.97 against the US dollar, weakening by 0.09 from Wednesday’s close of 55.88. The local currency started the day lower at 56.05, down from the previous day’s opening of 55.95, before trading within the range of 55.94 to 56.09. The average rate for the day stood at 56.02 to the dollar.
However, trading volume dipped to $1.37 billion, down from the previous session’s volume of $1.54 billion.
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