US Federal Reserve’s rate cut plans buoy Philippine shares toward 7,000

Investors on Thursday cheered the US Federal Reserve’s planned interest rate cuts later this year, allowing the Philippine Stock Exchange Index (PSEi) to finally reclaim 6,900. By the closing bell, the benchmark index added 1.55 percent, or 106.45 points, to 6,963.22. The broader All Shares Index rose by 1.21 percent, or 43.14 points, to 3,615.24.Stock exchange data show that 976.70 million shares valued at P6.34 billion changed hands, while foreigners made net purchases of P433.40 million.All subsectors rose, led by services, as index heavyweight International Container Terminal Services Inc. (ICTSI) surged by 9.28 percent to P344 per share. ICTSI was the top-traded stock.

Affirmed

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development, said traders were encouraged by the Fed reaffirming plans to implement three interest rate cuts this year.

“The [American] central bank kept borrowing costs unchanged after its crucial two-day March meeting, signaling a clear direction,” he said.

ICTSI was followed by BDO Unibank Inc., up 0.32 percent to P154.50 per share; SM Prime Holdings Inc., up 1.07 percent to P33.15; SM Investments Corp., which was unchanged at P980 per share; and Ayala Land Inc., up 1.73 percent to P32.35 per share.

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Shares of Bank of the Philippine Islands increased by 0.57 percent to P122.50 each; Jollibee Foods Corp., up 2.32 percent to P265; Ayala Corp., down 0.15 percent to P649.50; Universal Robina Corp., up 0.89 percent to P102.40; and PLDT Inc., up 1.78 percent to P1,369 per share.

Overall, there were 124 advancers against 77 losers, while 43 companies closed unchanged, data from the stock exchange showed. —Meg J. Adonis INQ