Rate cut prospects in the US power PSEi past 6,600

Strong gains in US markets spilled over to the local bourse on Thursday, with energized investors carrying the benchmark index above the 6,600 level.

By the closing bell, the Philippine Stock Exchange Index (PSEi) made a strong comeback as it rallied by 1.85 percent, or 119.89 points, to 6,609.24. Likewise, the broader All Shares Index gained by 1.30 percent, or 45.64 points, to 3,555.68.

A total of 427.66 million shares worth P6.8 billion changed hands as foreigners made net purchases worth P68.47 million, stock exchange data showed.

This came after major US markets—Dow Jones, S&P 500 and Nasdaq—all ended green overnight, “fueled by bets that US June inflation data will reinforce expectations of Federal Reserve interest rate cuts starting in September,” according to Juan Paolo Colet, managing director at investment bank China Bank Capital Corp.

The “broadening consensus” that the Bangko Sentral ng Pilipinas would start monetary policy easing by August also hyped up investors, Colet said.

All sectors gained, with holding firms posting a steep 2.35-percent climb.

BDO Unibank Inc., the banking arm of the SM Group, was the top-traded stock as it rose by 1.99 percent to P143.80.

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It was followed by Globe Telecom Inc., up 2.38 percent to P2,150; Robinsons Land Corp., up 0.42 percent to P14.24; Ayala Land Inc., up 1.55 percent to P29.50; and SM Investments Corp., up 2.78 percent to P870.

International Container Terminal Services Inc. was up 1.01 percent to P360; Ayala Corp., up 1.22 percent to P580; PLDT Inc., up 2.82 percent to P1,532; SM Prime Holdings Inc., up 2.11 percent to P29; and Metropolitan Bank and Trust Co., up 1.68 percent to P66.45 each.

Gainers edged out losers, 117 to 68, while 60 companies closed unchanged. —Meg J. Adonis