The Philippine Stock Exchange index (PSEi) gained for the third straight day, following the U.S. Federal Reserve’s first policy rate cut of the year.
The benchmark PSEi advanced 22.96 points, or 0.37 percent, to close at 6,233.62. The wider all-shares index inched up 5.84 points, or 0.16 percent, to 3,734.45.
The peso slid to 57.06 to the U.S. dollar on Thursday, from 56.89 on Wednesday.
The US Fed not only cut rates but also hinted at two more rate cuts this year to support the country’s weakening labor market.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the Bangko Sentral ng Pilipinas could match future U.S. Fed rate cuts.
Regina Capital Development Corp. head of sales Luis Limlingan said a potential rate cut by the BSP could boost market sentiment and provide a catalyst.
“Investors are optimistic that a more accommodative monetary stance will support economic activity and asset valuations,” Limlingan said.
Sectors ended mixed. Holding firms rose 1.09 percent, followed by industrials, which went up 1.04 percent, and services, which gained 0.36 percent.
Conversely, mining and oil plunged 2.5 percent, and financials and property fell 0.62 percent and 0.57 percent, respectively.
Value turnover amounted to P6.78 billion. Market breadth was nearly even, with 89 advancers and 88 decliners. Sixty-six stocks were unchanged.
Shares of Puregold Price Club Inc. rose 2.73 percent to P45.20. On the other hand, Ayala Land Inc. shares declined 2.88 percent to P26.95.
