PSEi climbs to 6,400 on interest rate cut bets

MANILA, Philippines – The capital index continued its climb on the first day of the trading week as investors remained upbeat about the Philippine economic rebound.

By the closing bell on Monday, the Philippine Stock Exchange Index (PSEi) went up by 1.13 percent, or 71.82 points, to close at 6,419.96.

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The broader All Shares Index also finished in the green, adding 0.95 percent, or 34.13 points, to 3,641.13.

All the major sectors posted gains, with the miners logging the strongest win at 5.01 percent.

Trading was also active as net value turnover hit P6.53 billion, said Philstocks financial research manager Japhet Tantiangco.

Foreign investors were also net buyers, providing market support with net inflows at P534.17 million.

Growth momentum

“The local market extended its rise as investors continued to buy with hopes that the local economy would be able to regain its growth momentum moving forward,” Tantiangco said.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., also said the projection of Japanese investment bank Nomura for two more interest rate cuts this semester further lifted market sentiment.

“Expectations of a more accommodative policy stance further encouraged risk-taking among investors,” he added.

SM Prime Holdings Inc. gained the most on Monday, increasing its share price by 3.24 percent to P23.90.

DigiPlus Interactive Corp. was the worst performer, falling 4.29 percent to P15.60.

Winners led losers at 142 to 80, with 53 issues remaining unchanged. INQ