MANILA, Philippines — The local stock market bounced back after sentiment got a boost from rate cuts delivered by the US Federal Reserve and the Bangko Sentral ng Pilipinas (BSP).
The benchmark Philippine Stock Exchange index rose by 0.5 percent or 30.06 points to end yesterday’s session at 5,990.
The broader All Shares index, however, slipped by 0.27 percent or 9.27 points, settling at 3,453.43.
Luis Limlingan of Regina Capital said the local bourse edged higher as the market digested the recent rate cuts from both the Fed and the BSP.
Limlingan said that investors welcomed the move, viewing it as supportive for growth and liquidity.
“As widely expected, the latest 25-basis point rate cut came after the latest 25-bp Fed rate cut to a new Fed rate target of 3.50 to 3.75 percent, the lowest in more than three years or since October 2022,” RCBC chief economist Michael Ricafort said.
“The latest Fed and BSP rate cuts, both widely expected by the markets, could further reduce borrowing costs that could lead to greater demand for loans, more economic activities and faster economic growth,” Ricafort said.
Most sectors were in the positive territory, led by financials which surged by 1.41 percent. Property as well as mining and oil indexes were in the red, down by 1.12 percent and 0.65 percent, respectively.
Total turnover value improved to P7.06 billion from the previous day’s P6.75 billion.
Decliners edged out advancers in the tight contest, 103 to 100, while 62 issues were unchanged.
BDO Unibank was the most actively traded stock, climbing by 2.35 percent to P122 per share, followed by ICTSI and Ayala Land which rose by 1.67 percent and 2.38 percent, respectively, to P608 and P21.50.