PSEi up as inflation, rate cut anticipation

Expectations that inflation cooled in March—which would allow room for the Bangko Sentral ng Pilipinas (BSP) to possibly cut rates—boosted the mood of investors on Wednesday.

By the end of the session, optimism fueled the benchmark Philippine Stock Exchange Index’s (PSEi) 1.08-percent rally, representing a 66.96-point increase, to close at 6,247.68.

Likewise, the broader All Shares Index added 0.74 percent, or 27.24 points, to 3,705.12.

A total of 1.31 billion shares worth P6.1 billion changed hands, stock exchange data showed.

Japhet Tantiangco, research head at Philstocks Financial Inc., said the market’s climb came on the heels of reports that inflation slowed last month.

This is seen to give the BSP more leeway to cut policy rates during its meeting next week.

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Rallies at top-traded stock BDO Unibank Inc. (up 3.07 percent to P158), Bank of the Philippine Islands (up 4.62 percent to P138.10) and Metropolitan Bank and Trust Co. (up 2.19 percent to P74.60) allowed the banking sub-index to end with a 2.86-percent climb.

BDO was followed by Ayala Land Inc., up 3.91 percent to P23.90; International Container Terminal Services Inc., up 1.86 percent to P361.60; BPI; and SM Prime Holdings Inc., down 1.46 percent to P23.65 each.

Other actively traded stocks were Manila Electric Co., down 1.45 percent to P542; Metrobank; PLDT Inc., down 0.87 percent to P1,260; Jollibee Foods Corp., down 3.67 percent to P231.20; and SM Investments Corp., up 0.51 percent to P792 per share.