Anticipation of BSP rate cut boosts PSEI

Philippine shares reclaimed the 7,400 level on Tuesday ahead of the Bangko Sentral ng Pilipinas’ (BSP) policy-setting meeting Wednesday, when it is expected to announce a reduction of the benchmark interest rate of banks.

By the closing bell, the benchmark Philippine Stock Exchange Index (PSEi) rallied by 1.77 percent, or 129.9 points, to 7,456.31. Meanwhile, the broader All Shares Index added 1.53 percent, or 61.73 points, to close at 4,086.45.

A total of 584.49 million shares worth P6.41 billion changed hands as foreigners made net purchases worth P638.15 million, stock exchange data showed.

Japhet Tantiangco, senior analyst at Philstocks Financial Inc., said the bourse gained as investors “drew optimism from expectations that the [BSP] will deliver another policy rate cut.”

The Monetary Board is meeting today and is widely expected to cut interest rates by 25 basis points to 6 percent on the back of cooling inflation.

Property firms logged the steepest climb at 2.06 percent, buoyed by gains at Ayala Land Inc. (ALI) and SM Prime Holdings Inc.

Sy family-led BDO Unibank Inc. was the most actively traded stock as it climbed by 1.51 percent to P161 each.

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It was followed by International Container Terminal Services Inc., up 1.59 percent to P408.40; Metropolitan Bank and Trust Co., up 3.95 percent to P81.50; Bank of the Philippine Islands, up 0.43 percent to P140.60; and Ayala Corp., up 1.39 percent to P730.

Other actively traded stocks were ALI, up 3.06 percent to P37.10; PLDT Inc., up 0.93 percent to P1,516; Security Bank Corp., up 4.47 percent to P98.20; SM Investments Corp., up 3.13 percent to P989; and Semirara Mining and Power Corp., down 0.73 percent to P34 per share.

Gainers outnumbered losers, 124 to 92, while 45 companies closed unchanged.