Hopes of more rate cuts buoy PSEi

The possibility of another interest rate cut following the easing of inflation encouraged investors to buy up shares, pushing the Philippine Stock Exchange index (PSEi) to end in the green for the second consecutive day.

The benchmark PSEi climbed by 0.41 percent, or 28.12 points, to close at 6,936.09. The broader All-Shares index rose by 0.36 percent, or 13.59 points, to settle at 3,752.86.

“The decline of inflation from July to August is seen to strengthen the case for the continuation of the BSP’s monetary policy easing,” Philstocks Financial Inc. senior analyst Japhet Tantiangco said.

Inflation slowed down to 3.3 percent year-on-year in August from 4.4 percent in July, according to the Philippine Statistics Authority. The latest print is also lower than the 5.3 percent readout for August 2023.

All the sub sectors were in the green except for services and mining and oil indices, which fell by 0.82 percent and 0.15 percent, respectively.

About 783.45 million shares valued at P6.12 billion were traded. Winners led losers, 93-90, while 57 issues were unchanged.

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The most actively traded shares were BDO Unibank Inc., rising by 1.95 percent to P157 each.

This was followed by Ayala Land Inc., up 1.15 percent to P35.25; International Container Terminal Services Inc., down 0.99 percent to P400; GT Capital Holdings Inc., up 5.43 percent to P680; SM Investments Corp., up 0.94 percent to P908.50; and AREIT Inc., up 0.14 percent to P35.95.