The Philippine Stock Exchange Index (PSEi) advanced Thursday as investors cheered the 25 basis points (bps) rate cut by the U.S. Federal Reserve.
The main composite index jumped 30.06 points, or 0.50 percent, to close at 5,990.00. The broader all shares index, on the other hand, declined 9.27 points, or 0.27 percent, to 3,453.43.
The U.S. Fed reduced interest rates for the third time this year while the Bangko Sentral ng Pilipinas (BSP) also announced a 25 bps rate cut to 4.5 percent on a benign inflation rate outlook.
The peso closed stronger on Thursday at 58.99 compared to 59.21 on Wednesday.
“The local market rose amid expectations that BSP will cut policy rates in their meeting. The positive cues from Wall Street brought by the Federal Reserve’s policy easing also helped in Thursday’s session,” Philstocks Financial Inc. research head Japhet Tantiangco said.
Sectoral indices remained mixed with financial increasing the most, up by 1.41 percent. Property, on the other hand, declined by 1.12 percent and mining and oil index by 0.65 percent.
Trading was active as value turnover reached P6.64 billion.
Foreign investors however remained net sellers with outflow at P761.25 million.
ACEN Corp. was the day’s top index gainer, increasing by 11.6 percent to P2.69 while SM Prime Holdings Inc. was at the bottom, declining by 3.91 percent to P22.10.
