Investors cheer rate cut, push PSEi past 6,800

For the first time since April, Philippine stocks barreled through the 6,800 barrier as investors cheered the Bangko Sentral ng Pilipinas’ (BSP) much-awaited interest rate cut.

The benchmark Philippine Stock Exchange Index (PSEi) on Friday rallied by 2.31 percent, or 154.46 points, to close at 6,847.37.

At the same time, the broader All Shares Index gained 1.74 percent, or 63.27 points, to 3,691.42.

READ: Asian markets surge on strong US consumer data

A total of 699.87 million shares worth P7.14 billion changed hands as foreigners made net purchases worth P654.36 million, stock exchange data showed.

The PSEi last touched 6,800 on April 4, or a few days before the market saw its longest losing streak of the year due to escalating geopolitical tensions in the Middle East.

It is now 4.48 percent above its 6,554.04 closing at the beginning of the year.

The market’s rally on the last trading session of the week came a day after the BSP slashed its monetary policy rate by 25 basis points to 6.25 percent, representing the first rate cut in nearly four years, according to Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp.

The services sector posted the highest gain among the indices at 3.12 percent as index heavyweight International Container Terminal Services Inc. (ICTSI), the top-traded stock, surged by 5.61 percent to P395 per share.

Banks and property firms, the two sectors that stand to benefit the most from a rate cut, also posted gains at 2.15 percent and 1.91 percent, respectively.

ICTSI was followed by Ayala Land Inc., up 3.44 percent to P33.10; Jollibee Foods Corp., up 3.36 percent to P252.20; Universal Robina Corp., down 0.69 percent to P93.40; and SM Investments Corp., up 1.14 percent to P930.50 each.

Converge ICT Solutions Inc. also rallied by 5 percent to P14.28 after posting higher first-half earnings. Ayala Corp. was up 2.12 percent to P625; BDO Unibank Inc., up 1.94 percent to P141.70; SM Prime Holdings Inc., up 1.67 percent to P30.50; and Manila Electric Co., up 6.14 percent to P425.

Gainers overpowered losers, 134 to 68, while 50 companies closed unchanged.