Positive foreign, local news buoy stocks

MANILA, Philippines —  The stock market bounced back on positive cues abroad coupled with expectations on earlier interest rate cuts.

The Philippine Stock Exchange index climbed by 1.06 percent or 69.57 points to close at 6,628.20.

The broader All Shares index also advanced by 0.72 percent or 25.10 points, settling at 3,524.52.

“The index rose with most Asian markets as data showing that US consumer inflation eased slightly in April reignited bets that the Federal Reserve will start cutting interest rates this year,” said Juan Paolo Colet, managing director at China Bank Capital Corp.

Colet said market participants also priced in expectations that the Bangko Sentral ng (BSP) will keep its policy rates unchanged.

As widely expected, the BSP Monetary Board decided to keep interest rates unchanged for the fifth straight meeting and hinted it may start cutting borrowing costs as early as August.

“Thus, less hawkish signals locally could support sentiment on the local financial markets, Rizal Commercial Banking Corp. chief economist Michael Ricafort said.

Philstocks Financial research and engagement officer Mikhail Plopenio said the growth in overseas Filipinos’ remittances likewise gave sentiment a boost.

“The local market rose as investors took positive cues from Wall Street’s overnight performance amid the US’ slower-than-expected April inflation. Investors also waited for the BSP’s policy meeting with hopes that cues of monetary policy easing will be given,” Plopenio said.

Yesterday’s net market value turnover was quite strong at P6.67 billion, significantly higher than the year-to-date average of P4.97 billion.

All sectors finished higher, except for financials, which declined by 0.33 percent.

Property led the charge with a 3.73-percent surge, followed by holding firms, which accelerated by 1.64 percent.

Market breadth was positive as advancers battered decliners, 120 to 78, while 46 issues were unchanged.

SM Prime posted the biggest gain among index members with 4.98 percent, while Monde Nissin lost the most with 4.1 percent.