Rate cut signals push PSEi higher

Joy over the Bangko Sentral ng Pilipinas’ (BSP) dovish monetary policy stance spilled over to Tuesday, sending the local stock barometer deeper into positive territory.

By the end of the session, the benchmark Philippine Stock Exchange Index (PSEi) had added 0.13 percent, or 8.36 points, to close at 6,433.6.

Likewise, the broader All Shares Index climbed by 0.11 percent, or 4.24 points, to 3,784.17.

A total of 1.1 billion shares worth P6.96 billion changed hands, stock exchange data showed.

The index’s increase came as investors absorbed the BSP’s news of possibly two more rate cuts this year, said Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp.

This was so, especially after June inflation logged at 1.8 percent, which was below the government target range of 2 to 4 percent

At the same time, traders cheered US President Donald Trump’s decision to delay the implementation of higher import tariffs to Aug. 1 from July 9 initially, pending trade negotiations with other countries.

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The services sector saw the steepest gain, led by top-traded stock DigiPlus Interactive Corp. (up 2.22 percent to P34.55) and index heavyweight International Container Terminal Services Inc. (up 1.67 percent to P425.80).

This signals a slow recovery for DigiPlus, which took the biggest blow from Sen. Sherwin Gatchalian’s proposed law imposing stricter rules on the online gaming scene.

Other actively traded stocks were Ayala Land Inc., down 0.36 percent to P27.70; and Bank of the Philippine Islands, down 1.97 percent to P124.50.