Index gains anew ahead of BSP policy decision

MANILA, Philippines —  Share prices rose anew ahead of today’s Bangko Sentral ng Pilipinas (BSP)’s policy meeting.

The benchmark Philippine Stock Exchange index climbed by 0.82 percent or 54.52 points to close at 6,704.96.

The broader All Shares index also grew by 0.53 percent or 19.3 points to settle at 3,629.30.

“Investors continued to bargain hunt ahead of the BSP meeting, while more economic data and corporate earnings continue to underscore that the economy continues to perform remarkably well,” Luis Limlingan of Regina Capital said.

While most economists expect the BSP Monetary Board to cut interest rates by 25 basis points today, some are convinced that the benchmark rate would be retained at a 17-year high of 6.50 percent.

The central bank raised key policy rates by 450 basis points between May 2022 and October 2023 to tame inflation and stabilize the peso that slumped to an all-time low of 59 to $1 in October 2022.

BSP Governor Eli Remolona Jr. believes there is more room to keep borrowing costs elevated following the faster-than-expected 6.3 percent gross domestic product growth in the second quarter.

Limlingan said local sentiment likewise got a boost from US equities.

Total value turnover stood at P6.96 billion.

All sectors finished in the green territory, led by property, which surged by 1.69 percent.

Both the industrial and mining and oil index also expanded by more than one percent each.

Market breadth, however, remained negative as decliners edged out advancers, 105 to 98, while 54 issues were unchanged.

Among the most actively traded stocks were Jollibee Foods, ICTSI, Ayala Land, Ayala Corp. and DigiPlus.