BSP rate cut pushes PSEi past 6,400
MANILA, Philippines — The Philippine Stock Exchange Index (PSEi) edged higher on Thursday after expectations of further monetary policy easing buoyed investor sentiment. This reinforced gains already supported by positive leads from Wall Street.
The PSEi rose by 0.19 percent or 12.38 points to close at 6,407.15.
Hopes for another policy rate cut — which were eventually realized — helped sustain the market’s upward momentum, according to Philstocks Financial Inc.
The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) lowered the key interest rate by 25 basis points to 4.25 percent during its latest policy meeting held Thursday.
READ: BSP cuts policy rate by 0.25 ppt to support lethargic economy
The decision to ease borrowing costs is seen to support economic activity and improve liquidity, providing a favorable backdrop for equities.
Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said the PSEi ended higher as bargain hunters resumed to take advantage of attractive valuations following recent declines.
“Investors continued to assess the impact of the latest rate cut from the BSP, weighing its potential to support liquidity and market sentiment,” Limlingan said.
“The move helped improve risk appetite at the margins despite lingering concerns over subdued growth forecasts, allowing the benchmark to finish in positive territory,” he added.
Despite the advance, Philstocks financial research manager Japhet Tantiangco said trading activity remained subdued.
Net value turnover reached only P4.94 billion, falling short of the year-to-date average of P6.28 billion.
Foreign investors were also cautious, ending the session as net sellers with outflows totaling P96.93 million.
Semirara rebounds
Sectoral performance was mixed. Mining and oil stocks led the market, climbing 3.76 percent.
Property counters lagged behind, declining by 0.86 percent.
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Market breadth remained positive, with advancers outnumbering decliners, 119 to 89.
Among individual stocks, Semirara Mining and Power Corp. emerged as the top index gainer. It surged 13.53 percent to P25.60 as it rebounded from prior losses.
On the other hand, DigiPlus Interactive Corp. was the session’s worst performer, slipping 1.66 percent to P14.18.
Analysts said expectations of lower interest rates continued to underpin equities, as easing borrowing costs typically support economic activity and corporate growth.
However, the muted turnover and continued foreign selling suggested that some investors remained on the sidelines while awaiting clearer signals on the pace of future BSP policy moves. INQ
