Early BSP rate cut hopes buoy stocks

MANILA, Philippines — The stock market capped off the week on a high note, posting slight gains to extend its winning streak to a third straight day.

The benchmark Philippine Stock Exchange index inched up by 0.14 percent or 8.90 points to close at 6,518.76.

The broader All Shares index likewise posted a minimal increase of 0.06 percent or 2.14 points to settle at 3,491.93.

“This increase was driven by heightened expectations of a possible rate cut by the Bangko Sentral ng Pilipinas in the early part of the second half of the year, following the latest inflation data, which fell within the government’s target range of two to four percent,” Claire Alviar of Philstocks Financial said.

Headline inflation quickened for the fourth straight month to 3.9 percent in May from 3.8 percent in April, still within the government’s two four percent target range.

Regina Capital’s Luis Limlingan, on his end, said Philippine equities ended relatively unchanged as it echoed the muted movement of the US market.

“US investors are in a holding pattern ahead of the May jobs report, anticipating that signs of a slowing labor market could prompt the Fed to consider interest rate cuts,” he said.

Yesterday’s net market value turnover thinned to P3.99 billion from the previous day’s P4.15 billion.

Holding firms was the sole sector in the red, slipping by 0.67 percent.

Financials, on the other hand, registered the highest increase during the session at 0.65 percent.

Decliners edged out advancers in a tight contest, 90 to 88, while 63 issues were unchanged.

Converge ICT Solutions recorded the biggest gain among index members at 3.08 percent Semirara Mining and Power posted the largest loss at 2.14 percent.