PSEi edges higher on possible rate cuts

MANILA, Philippines – The local stock barometer inched up at the start of the trading week on expectations that the US Federal Reserve and the local central bank would further slash policy rates.

The Philippine Stock Exchange Index (PSEi) added 0.46 percent, or 27.42 points, to close at 5,976.64.

READ: Peso sinks to new low of 59.22 vs $1

By the end of the session, the broader All Shares, however, dipped by 0.33 percent, or 11.47 points, to 3,466.21.

The major sectors had mixed performances, with the property leading the pack with a 1.62 percent increase. Miners, however, plunged by 2.50 percent.

Stock data showed trading was active with net value turnover at P7.27 billion.

“The local market’s sideways movement ended in the positive territory as investors hunted for bargains following last week’s decline,” said Philstocks financial research manager Japhet Tantiangco.

Policy rates

“Hopes that both the Federal Reserve and the Bangko Sentral ng Pilipinas would cut their policy rates this week helped in building Monday’s gains,” he said.

Meanwhile, Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said the capital index’s performance on Monday was “quiet… as investors remained cautious.”

JG Summit Holdings Inc. had the most gains, increasing by 6.01 percent to P22.05. DigiPlus Interactive Corp., on the other hand, had the biggest drop, falling 9.95 percent to P19.90.

Losers continued to outnumber winners at 132 to 83, while 48 names were unchanged.