PSEi regains 6,000 territory

MANILA, Philippines – The capital index has returned to the 6,000 mark on Monday as another interest rate cut looms.

The Philippine Stock Exchange Index (PSEi) edged higher by 0.41 percent, or 24.46 points, to close at 6,021.59.

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The broader All Shares Index likewise jumped 3.41 percent, or 116.66 points, to 3,535.18.

Only the financials and services were losers among the key sectors. 

The industrial and property counters, meanwhile, booked the highest gains during the trading.

Buying surge

“The local bourse closed higher, lifted by a late-session buying surge that helped sustain the market’s upward momentum,” said Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp.

“Investor sentiment improved amid growing expectations of another policy rate cut before the year ends,” he added.

This was despite the local currency losing more ground against the greenback.

Low inflation

Limlingan also said the Bangko Sentral ng Pilipinas had more room to slash rates amid low inflation.

Economists previously said the central bank would maintain its rate-cutting cycle until next year, especially as the country recorded slower economic expansion in the third quarter.

If consumers and businesses see cheaper borrowing costs, they are more inclined to spend more or obtain additional loans to fund expansion and avail goods and services.

The market ended with 109 gainers and 72 decliners, while 64 were unchanged. INQ