PSEi extends gains on fresh rate cut hopes

The local stock barometer started the trading week in the positive territory, fueled by expectations of another rate cut early next year.

The Philippine Stock Exchange Index (PSEi) extended its gains on Monday, jumping 0.35 percent, or 21.30 points, to finish at 6,058.02.

The broader All Shares also climbed 0.61 percent, or 20.89 points, to 3,455.83.

Almost all major sectors were winners by the end of the session, except services, which plunged 3.28 percent.

Trading was also “quite active” with net value turnover at P6.11 billion, Philstocks financial research manager Japhet Tantiangco.

“The PSEi started the week in the green as buying pressure persisted, allowing the index to hold above the 6,000 level and move closer to its 100-day moving average,” said Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp.

“Gains were sustained despite a lowered growth outlook and slower remittance growth,” he said.

Tantiangco, meanwhile, attributed the upswing to “hopes of further monetary policy easing.”

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“This is as BSP (Bangko Sentral ng Pilipinas) Governor Eli Remolona Jr. signals the possibility of one more policy rate cut by 2026,” he said.

The central bank is set to make its decision by February next year.

Last week, the BSP cut the key policy rate by 25 basis points to 4.5 percent, marking its fifth consecutive reduction to prop up the local economy.

Ayala Land Inc. gained the most on Monday, adding 3.92 percent to P22.55. International Container Terminal Services Inc., on the other hand, suffered the biggest drop by 4.75 percent to P581.