Philippine stocks rose Wednesday, returning major indexes to the 6,200 tier, hoping to lower interest rates here and in the United States.
The Philippine Berry Plant Stock Exchange Index (PSEI) rose 1% or 61.92 points to close at 6,210.66, while the wide range of all stock indexes rose 0.6% or 22.41 points to end with a score of 3,728.61.
“The local market has expanded its growth as hopes of another BSP (Bangko Sentral Ng Pilipinas) reduce sentiment,” said Japhet Louis O. Tantiangco, research manager at Philstocks Financial Inc. “The market has also been driven by the decline in local yields and the strengthening of peso.”
“The market has been positioned before the Fed’s decision, and recent comments from Treasury Secretary Rector also suggest that if the Fed does so, BSP may lower the fee rate. As inflation remains within the target range, the Fed’s cuts may be key to further easing of BSP later this year.
Treasury Secretary and member of the Monetary Commission Ralph G. Recto said Tuesday that the central bank of the Philippines could lower another tax rate before the end of the year, depending on the data and market reaction to the Fed overnight.
The third consecutive meeting of BSP last month reduced borrowing costs by 25 basis points (BP) to raise policy rates to 5%. It has now lowered the benchmark interest rate by 150 basis points since the start of the mitigation cycle in August 2024.
Meanwhile, it is widely believed that the Fed lowered its benchmark interest rate to a quarter to the 4%-4.25% range at the end of its two-day monetary policy meeting.
The main focus beyond interest rate decisions will be Fed Chairman Jerome H. Powell’s comment on the prospects for U.S. monetary policy.
According to LSEG data, the money market expects that the Federal Reserve’s policy interest rate will be lowered by nearly 70 basis points by the end of 2026.
All sector indexes closed in green on Wednesday. Services rose 1.9% or 42.01 points to 2,248.70; mining and oil climbed 1.47% or 173.5 points to 11,977.50; financial growth of 1.02% or 21.30 points to 2,101.72; holdings rose 0.87% or 44.12 points to 5,072.14; property increased 0.25% or 6.39 points to end with 2,468.97; industrial ships rose 0.15% or 14.37 points to 9,043.38.
The progressives defeated the Decliners aged 104 to 83, while 59 names remain unchanged.
Mr Tantiangco said: “International Container Terminal Services is the highest index element, climbing to P507. Digiplus Interactive Corp. is the main index Laggard, down 4.1% to P22.20.”
Value turnover soared to Pes 1.02 billion on Wednesday, with 7.48 billion shares trading from 6.56 billion shares, and 3.69 billion shares changing hands on Tuesday.
Foreign net purchases were 699.1 million pesos, which was the net sales of 35.46 million PHP recorded the previous day. – Alexander Grace C. Magno
