MANILA – The local stock market showed a strong rebound on Thursday, buoyed by indications from the Bangko Sentral ng Pilipinas (BSP) that it may lower policy rates again in the fourth quarter.
The Philippine Stock Exchange index (PSEi) increased by 1.31 percent, closing at 7,458.74, while the All Shares index rose by 0.98 percent to settle at 3,978.10.
According to Michael Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC), this closing marks the PSEi’s highest level in over two and a half years, last reached on February 9, 2022.
“Just a day earlier, BSP Governor Eli Remolona Jr. hinted at potential total cuts of -0.50 in local policy rates for the remainder of 2024, with reductions of -0.25 scheduled for both October 17 and December 19 rate-setting meetings,” Ricafort noted.
He added that Finance Secretary Ralph Recto had also indicated a likely -0.50 local policy rate cut to align with the Federal Reserve’s substantial cut of the same magnitude on September 18, 2024, suggesting that inflation may ease further.
Out of six market sectors, five ended in positive territory, with the exception of Mining and Oil, which dipped by 0.34 percent to 8,743.01. The Financials sector led the gains, climbing 2.59 percent to 2,384.69. It was followed by Holding Firms, which rose by 1.07 percent to 6,328.70; Services, up 0.94 percent to 2,255.78; Industrial, up 0.83 percent to 9,821.05; and Property, which gained 0.37 percent to 2,988.45.
Market breadth favored gainers, with 111 stocks advancing compared to 80 decliners, while 61 issues remained unchanged.
In currency trading, the Philippine peso closed at 55.97 to the US dollar, weakening slightly from Wednesday’s finish of 55.88. The local currency opened at 56.05 and traded within a range of 55.94 to 56.09, averaging 56.02 throughout the day.
Trade volume decreased to USD 1.37 billion from USD 1.54 billion in the previous session.
ia/mnm
