Surprise BSP rate cut perks up PH stocks; index up sharply
The benchmark Philippine Stock Exchange index (PSEi) saw a sharp increase on Friday after the Bangko Sentral ng Pilipinas announced a surprise cut in its key interest rate the previous day.
By the closing bell, the PSEi had gained 2.46 percent, or 172.17 points, to 7,169.79 while the broader all-shares index was up 2.23 percent, or 91.85 points, to 4,219.39.
“The PSEi had an exceptional day rallying by almost 2.5 percent, allowing it to end with a substantial gain for the week,” Chris Mangun, research head at stock brokerage firm AAA Equities, said in a note to investors.
“It may have been the surprise interest cut from the BSP that drew this extremely positive reaction. It gave investors confidence that the government is willing to do whatever it can to spur economic growth in the near future,” he added.
Bullish sentiments were seen across all subsectors on Friday.
Leading the pack were mining and oil, up 2.88 percent, followed by holding firms, property and financials.
“This week’s gains mark three consecutive weeks of advances for the PSEi,” Mangun said.
A total of 32.03-billion shares valued at P10.94 billion changed hands on Friday.
There were 159 gainers to 66 losers while 45 companies closed unchanged.
BDO Unibank Inc. was the most actively traded for the session as it gained 5.76 percent to P104.70 per share. —Miguel R. Camus
