Philippine shares continued their ascent Thursday, closing above the 5,900 level on the potential for a rate cut next month.
The benchmark Philippine Stock Exchange index surged 117.10 points, or 2.01 percent, to close at 5,930.81. The broader all shares index added 83.18 points, or 2.56 percent, to 3,335.02.
The peso depreciated to 59.065 to the U.S. dollar Thursday, down from 58.935 on Wednesday.
“The rally was fueled by renewed confidence following indications of further rate cuts from the BSP (Bangko Sentral ng Pilipinas) before the year ends,” said Luis Limlingan of Regina Capital Development Corp.
“Also, the removal of agricultural tariffs and the government’s plans for negotiations to reduce tariffs on non-exempt goods helped sentiment,” he added.
Analysts said investors also continued with their bargain-hunting activities as some stocks remain at oversold levels.
Among the sectors, only the mining and oil index ended in the red, down 0.49 percent. Property and financials rose significantly, increasing by 2.83 percent and 2.64 percent, respectively, on hopes of another interest rate cut.
Trading was active, with value turnover at P6.86 billion.
Foreign investors turned net buyers with inflows at P7.42 billion.
Puregold Price Club Inc. was the day’s top index gainer, jumping 6.49 percent to P41. ACEN Corp. was the worst index performer, dropping 3.27 percent to P2.37.
