Philippine stocks extended their winning streak Thursday, with investors betting that Bangkok’s Sentral Ng Pilipinas (BSP) may soon follow the U.S. Federal Reserve’s move to ease monetary policy, thereby increasing demand for risky assets.
The benchmark Philippine Stock Exchange Index (PSEI) climbed 0.37% or 22.96 points to close at 6,233.62, while the broad all-share index rose 0.15% or 5.84 points to 3,734.45. This is the third consecutive day of profits from PSEI.
“The market has responded positively to the Fed’s reduction, as this move could lead to similar actions by BSP,” Luis A. Limlingan, head of sales at Regina Capital Development, said in a Viber message. “The potential rate of BSP reduction may increase sentiment in the market, which has led to recent price increases.”
He added that investors expect wider monetary policies to enhance economic activity and asset value.
The U.S. Federal Reserve lowered its benchmark rate by 25 basis points on Wednesday, the first drop in nearly a year, while indicating that there may be two cuts before the end of the year.
Fed Chairman Jerome H. Powell pointed out that despite signs of ease in inflation, the weakening of the U.S. labor market.
While Wall Street’s reactions were mixed together – the Dow Jones industrial average was higher, while the S&P 500 and Nasdaq were getting higher – Philippine investors saw the Fed’s actions as a tip for local easing.
Finance Minister Ralph G. Recto earlier said that BSP may consider a 25 benchmark point or two at policy meetings on October 9 and December 11, depending on us and domestic inflation trends.
Department performance mixes together. Finance grew 1.04% to 2,123.69, holding companies rose 1.08% to 5,127.32, and services rose 0.35% to 2,256.7. On the other hand, mining and oil fell 2.49% to 11,678.28, industrial communities fell 0.62% to 8,987.12, and property fell 0.56% to 2,454.96.
The market breadth is almost flat, with 89 winners accounting for 88 losers, while 66 stocks remain unchanged. The total foreign net sales amounted to 55.05 million pesos.
From the previous day, the value turnover decreased to 6.87 billion p6.87 billion. A total of 2.09 billion shares changed hands, a sharp drop from 7.48 billion shares on Wednesday. – Alexander Grace C. Magno
