FILE PHOTO: Philippine Stock Exchange Index (PSEi). INQUIRER FILES
The local bourse rallied by more than two percent on Wednesday as investors rode on the Bangko Sentral ng Pilipinas’ (BSP) dovish monetary policy outlook for next year.
This drove the benchmark Philippine Stock Exchange Index (PSEi) near 7,000 as it surged by 2.53 percent or 172.44 points to close at 6,975.63, its highest in nearly two weeks.
Likewise, the broader All Shares Index climbed by 0.92 percent or 35.23 points to 3,847.41.
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A total of 731.77 million shares worth P5.38 billion changed hands as foreigners made net purchases worth P82.21 million, stock exchange data showed.
The PSEi has so far risen for four consecutive trading days, its strongest performance since Donald Trump claimed victory in the US elections.
According to Japhet Tantiangco, research head at Philstocks Financial Inc., investors were jolted by the BSP hinting at cutting rates by a total of 100 basis points next year.
Easing interest rates typically lead to heightened consumer spending and investments due to lower borrowing costs.
Investors snapped up the shares of conglomerates and banks the most, with BDO Unibank Inc. (up 5.84 percent to P154 each), Metropolitan Bank and Trust Co. (up 5.01 percent to P77.5) and SM Investments Corp. (up 7.09 percent to P959.5) leading the charge.
Ayala Land Inc. was the top-traded stock as it climbed by 3.59 percent to P30.3 each, followed by BDO; International Container Terminal Services Inc., up 1.32 percent to P399; Bank of the Philippine Islands, down 0.07 percent to P138; and Ayala Corp., down 0.61 percent to P647.
Other actively traded stocks were SM Prime Holdings Inc., up 2.1 percent to P29.2; Universal Robina Corp., down 0.23 percent to P88; Metrobank; GT Capital Holdings Inc., up 0.15 percent to P655; and SM Investments.
Losers edged out gainers, 110 to 88, while 59 companies closed unchanged, stock exchange data also showed.