PSEi rises as Fed chief hints at early cut

MANILA, Philippines — Philippine stocks climbed for a second straight session after the US Federal Reserve hinted an interest rate cut by next month.

The Philippine Stock Exchange index (PSEi) opened the month of August on a high note, surging by 1.13 percent or 74.74 points to end the session at 6,693.83.

The broader All Shares index followed suit, rising by 0.87 percent or 31.47 points to settle at 3,629.18.

Philstocks Financial research and engagement officer Mikhail Plopenio said investors took positive cues from Wall Street overnight as the Federal Reserve signaled that a rate cut in September could be possible.

Plopenio said a rate cut by the Federal Reserve would somehow give more room for the Bangko Sentral ng Pilipinas to ease its own policy.

“Philippines shares started the month with bargain hunting following the sentiment of Fed meeting. Gains were influenced by Fed chair Jerome Powell signaling the possibility of an interest rate cut at the next meeting if data continues to show easing inflation,” Luis Limlingan of Regina Capital said.

Net value turnover, however, weakened to P3.89 billion from the previous day’s P5.20 billion.

All counters finished in the green, four of which increased by more than one percent.

Leading the charge was financials, which soared by 2.75 percent, followed by mining and oil which grew by 1.70 percent.

Market breadth stayed positive as advancers pounded decliners, 104 to 75, while 50 shares were unchanged.

BDO Unibank posted the largest gain among the index members at 4.89 percent while San Miguel Corp. incurred the biggest drop at 1.85 percent.

Aside from BDO, other most actively traded stocks were Ayala Land, which declined by 0.34 percent; ICTSI, down by 1.12 percent; SM investments, down by 0.11 percent and Metrobank down by 1.02 percent.