PSEi rallies to 6,900 level as BSP hints of rate cuts

By Revin Mikhael D. Ochave, Reporter

PHILIPPINE STOCKS closed higher for the fourth straight day on Wednesday, rallying to the 6,900 level on a possible 100 basis-point (bp) rate cut by the Philippine central bank next year.

The benchmark Philippine Stock Exchange index (PSEi) rose 2.53% or 172.44 points to 6,975.63. The broader all-share index also gained 0.92% or 35.23 points to 3,847.41.

“The market was mainly driven by the reassurance from the Bangko Sentral ng Pilipinas (BSP) that the Philippines’ monetary policy is still in its easing phase with a possibility of a 100-bp rate cut in total next year,” Japhet Louis O. Tantiangco, a senior research analyst at Philstocks Financial, Inc., said in a Viber message.

On Tuesday, BSP Governor Eli M. Remolona, Jr. said the Monetary Board would likely deliver rate cuts at the 100-bp range. But he hinted that they could either cut or keep the rates steady at their Dec. 19 meeting.

“Foreign investors also turned buyers on the net, helping the market climb,” Mr. Tantiangco said.

Net foreign buying reached P82.21 million, a turnaround from P1.15 billion worth of net foreign outflows on Tuesday.

“Philippine stocks extended their rally, posting their biggest gain since February of 2023 as the market viewed the recent interaction call between President Ferdinand R. Marcos, Jr. and Donald J. Trump under a positive note,” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a Viber message.

Mr. Marcos on Tuesday said he had a “very productive” congratulatory phone call with the US President-elect.

He said the relationship between the US and the Philippines are “as deep as can possibly be because it has been for a very long time,” adding that he plans to meet with his US counterpart soon.

Sectoral indices rose across the board. Holding firms went up 3.25% or 186.84 points to 5,926.71, while financials climbed 2.95% or 66.42 points to 2,315.04.

The property index went up 1.99% or 51.94 points to 2,661.51, while industrials rose 1.61% or 152.68 points to 9,610.8.

Services gained 0.84% or 17.70 points to 2,120.57, while mining and oil added 0.13% or 10.53 points to 7,713.19.

Value turnover dropped to P5.38 billion covering 731.77 million stocks from P5.45 billion covering 783.36 million shares on Tuesday. Losers beat advancers 110 to 88, while 59 stocks were unchanged.