BSP rate cut pushes PSEi past 6,400
Philippine stocks 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 Philippine Stock Exchange Index (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 on Thursday.
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 taking 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.
