Bourse rallies past 7,100 on US rate cut hopes
Optimism over easing inflation and a possible interest rate cut in the United States spilled over to the beginning of the week, with the local bourse rallying past 7,100.
By the closing bell on Monday, the benchmark Philippine Stock Exchange Index (PSEi) climbed by 1.16 percent, or 81.35 points, to 7,104.20, its highest closing value this year.
The broader All Shares Index also gained by 0.83 percent, or 31.37 points, to close at 3,820.
A total of 724.30 million shares worth P3.96 billion changed hands as foreigners made net purchases worth P158.29 million, stock exchange data showed.
The market’s rally came despite anxiety over the US Federal Reserve’s possible monetary policy stance, with the American central bank set to meet on Tuesday until Wednesday. Analysts previously warned that traders may sell their shares ahead of the meeting.
However, Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., pointed out that investors are still expecting the Fed to slash its key policy rate by 25 basis points, thus the local market’s positive performance.
All subsectors were painted green, with mining firms registering the steepest climb at 1.59 percent.
Online entertainment and gaming firm DigiPlus Interactive Corp. was the most actively traded stock as it surged by 5.63 percent to P18 each.
It was followed by International Container Terminal Services Inc., up 0.58 percent to P413.40; BDO Unibank Inc., up 2.37 percent to P159.90; Ayala Corp., up 2.26 percent to P634; and SM Investments Corp., up 0.90 percent to P948.50.
Monde Nissin Corp. rallied by 5.97 percent to P10.30; Universal Robina Corp., up 1.20 percent to P92.80; Rizal Commercial Banking Corp., up 4.49 percent to P24.45; Metropolitan Bank and Trust Co., down 1.15 percent to P73.15; and JG Summit Holdings Inc., up 3.60 percent to P25.90 per share.
Gainers overpowered losers, 115 to 85, while 53 companies closed unchanged.
