US fed’s hints of rate cut boost PH shares

Positive signals from the US Federal Reserve on a possible interest rate cut in September fired up investors on the first trading day of the month, with the local bourse nearly breaching the 6,700 level.

By the end of the session on Thursday, the benchmark Philippine Stock Exchange Index (PSEi) gained 1.13 percent, or 74.74 points, to close at 6,693.83.

Meanwhile, the broader All Shares Index went up by 0.87 percent, or 31.47 points, to 3,629.18.

A total of 449.8 million shares worth P4.39 billion changed hands, stock exchange data showed.

The market’s gain came after Wall Street’s positive overnight performance as investors cheered a possible rate cut next month, according to Mikhail Plopenio, researcher at Philstocks Financial Inc.

The American central bank kept key rates unchanged during its July 31 policy meeting, but noted that progress in lowering inflation could pave the way for a rate cut.

Banks led the gainers at home with a 2.75-percent gain as index heavyweight BDO Unibank Inc. jumped by nearly 5 percent.

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Zobel family-led Ayala Land Inc. was the top-traded stock as it declined by 0.34 percent to P29.40.

It was followed by BDO, up 4.89 percent to P143.70; International Container Terminal Services Inc., up 1.12 percent to P360; SM Investments Corp., down 0.11 percent to P907; and Metropolitan Bank and Trust Co., down 1.02 percent to P68 each.Other actively traded stocks were Philippine Seven Corp., which surged by 9.91 percent to P68.20; AREIT Inc., up 2.7 percent to P38; ACEN Corp., unchanged at P5.49; Bank of the Philippine Islands, up 2.89 percent to P124.80; and GT Capital Holdings Inc., up 1.69 percent to P600 per share.

There were 104 gainers against 75 losers, while 50 companies were unchanged at closing, stock exchange data also showed. —Meg J. Adonis INQ