Local stocks and the Philippine peso rose Wednesday on positive cues from Wall Street on renewed hopes of interest rate cut by the US Federal Reserve.
The benchmark Philippine Stock Exchange index briefly touched the 6,700 level before closing at 6,687.71, up 20.62 points or 0.31 percent from the previous trading day. The all-shares index also picked up by 8.69 points or 0.24 percent to finish at 3,594.62.
The peso also benefitted from rosy outlook at it closed stronger at 58.29 against the US dollar Wednesday, up from 58.38 Tuesday.
“A broadening of US equity outperformance could be a sign that the recent emerging market gains can be sustained,” Bank of the Philippine Islands lead economist Jun Neri said.
Philstocks Financial Inc research head Claire Alviar said investor sentiment was lifted after the Asian Development Bank and the International Monetary Fund predicted that the Philippine economy would grow 6 percent year-on-year in 2024.
The two global financial institutions also forecast a 6.2-percent gross domestic product (GDP) growth for the Philippines next year, making it one of the fastest-growing economies in Asia.
Indices ended mixed, led by mining and oil which rose 4.27 percent as gold prices hit an all-time high. Holding firms also advanced by 1.14 percent while industrial climbed 0.43 percent.
Property dropped 0.34 percent, while financials and services declined by 0.31 percent and 0.22 percent, respectively.
Net value turnover reached P3.92 billion.
