Stocks inch up on possible BSP rate cuts in 2027

MANILA, Philippines — The local stock market rose to mark the week’s open yesterday, taking a cue from a possible cut in interest rates by the Bangko Sentral ng Pilipinas (BSP) next year to support growth.

The benchmark Philippine Stock Exchange index (PSEi) yesterday gained 0.22 percent or 13.26 points, climbing to 6,075.07.

Likewise, the broader All Shares index picked up 0.15 percent or 5.12 points, reaching 3,363.52.

Regina Capital Development Corp. head of sales Luis Limlingan said investors have treated the news that the BSP may start easing in 2027 as a signal to buy shares.

In its August Monetary Policy Report, the central bank said a low-inflation scenario could create room for policy rate cuts to support economic growth.

“Some policy tightening in 2026 is still necessary to contain high inflation, although a policy reversal in 2027 could become possible in response to weakening economic prospects,” the BSP said, as it has raised interest rates by 75 basis points this year, bringing the benchmark rate to five percent.

However, he noted that the market is still lacking a positive catalyst to propel sustained growth.

Limlingan said investors would adopt cautious trading for the rest of the week due to the absence of a long-term peace deal in the Middle East.

“The local bourse edged higher after two consecutive sessions in the red, as investors engaged in bargain hunting following the BSP’s indication it could begin easing monetary policy if inflation declines faster than expected,” Limlingan said.

The PSEi saw P5.70 billion worth of shares change hands yesterday.

Winners edged losers by a hair, 96 to 95, while 66 were unchanged.

Logistics giant ICTSI was the most actively traded stock yesterday, climbing by 0.51 percent to reach P990 per share.