PSEi bounces back ahead of BSP rate cut

MANILA, Philippines — Share prices climbed yesterday ahead of the expected rate cut from the Bangko Sentral ng Pilipinas (BSP).

Following a decline on Wednesday, the benchmark Philippine Stock Exchange index bounced back and gained 0.31 percent or 19.58 points to cap off the session at 6,357.01.

The broader All Shares index likewise increased by 0.17 percent or 6.39 points to 3,779.18.

Luis Limlingan of Regina Capital said shares were bought up ahead of the BSP’s policy meeting where a 25-basis-point rate cut was widely anticipated.

“Philippine shares closed moderately higher ahead of the BSP decision and right after the Fed held rates steady,” Limlingan said.

As expected by many, the BSP’s Monetary Board yesterday slashed policy rates further by 25 basis points, bringing the target reverse repurchase rate to 5.25 percent from 5.50 percent.

Since August last year, the central bank has lowered interest rates by 125 basis points as inflation outlook continued to soften.

Most sectoral gauges finished strong, led by financials which surged by 1.09 percent.

Mining and oil as well as services, meanwhile, fell by 1.12 percent and 0.26 percent, respectively.

Total value turnover thinned to P4.43 billion from the previous day’s P5.28 billion.

Market breadth was negative with decliners ending out advancers in another tight contest, 91 to 90, while 57 issues were unchanged.

Bloomberry was the session’s top traded stock, rising by 0.18 percent to P5.61 per share, followed by DigiPlus which declined by 0.5 percent to P60.30 and BPI which climbed by 1.55 percent to P137.60.