Twin Fed, BSP rate cuts lift PSEi
The local stock barometer regained its momentum on Thursday, thanks to the twin interest rate cuts by the US Federal Reserve and the Bangko Sentral ng Pilipinas.
The Philippine Stock Exchange Index (PSEi) rose by 0.5 percent, or 30.06 points, to close at 5,990.00.
The broader All Shares Index, however, fell 0.27 percent, or 9.27 points, to 3,453.43.
Only the property and miners saw declines of 1.12 percent and 0.65 percent, respectively. Financials, meanwhile, emerged as the biggest winner among the key sectors.
Trading was likewise active with net value turnover at P6.64 billion.
“The local bourse edged higher as the market digested the recent rate cuts from both the Fed and the BSP,” said Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp.
The analyst said market sentiment got a boost, with investors seeing the latest development “as supportive for growth and liquidity.”
The local central bank on Thursday approved a fresh quarter-point rate cut, a move that was widely anticipated by economists as the country had witnessed slower growth in the third quarter due to the public works corruption fiasco.
When interest rates are lower, consumers and businesses are encouraged to borrow additional funds to avail of goods and services, subsequently propelling demand.
Decliners again outpaced advancers at 103 to 100, while 62 remained unchanged.
ACEN Corp. gained the most, climbing 11.62 percent to P2.69.
