Shares rise on Wall Street rally, dovish BSP hint

MANILA  —The Philippine benchmark index rebounded on Monday as investors weighed statements by the Bangko Sentral ng Pilipinas (BSP) chief on the possibility of earlier interest rate cuts amid expectations these would happen in the second half 2024.

The Philippine Stock Exchange Index (PSEi) jumped 1.23 percent, or 79.93 points, to 6,583.47 while the broader All Shares index was up 0.81 percent, or 28.04 points, to 3,479.82.

READ:  Rate cut in H1 ‘possible’–Remolona

“The market kicked off the week in the green on the back of strong gains in US markets last Friday. BSP Governor Eli Remolona’s remarks that a policy rate cut is possible, though not likely, in the first half of this year was also viewed positively by some investors who saw it as a signal that the Monetary Board was not totally closed to a dovish shift in the next few months,” Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., said on Monday.

Several analysts are expecting the unwinding of high domestic interest rates to happen in the latter part of the year due to prevailing inflationary pressures. Meanwhile, trading volume eased lower during the session as 301.2 million shares valued at P4.56 billion changed hands. Foreigners resumed buying, with net purchase reaching P97.3 million.

READ: Asian shares mixed, Hong Kong stocks near 15-month low

Industrial stocks slumped 0.13 percent while all other sectors rose, led by mining and oil’s 1.65 percent increase. —INQ