MANILA, Philippines — Share prices sustained its rally, extending the market’s climb to a fourth consecutive session yesterday behind continued investor optimism on the Bangko Sentral ng Pilipinas’ potential rate cut.
Share prices sustained its rally, extending the market’s climb to a fourth consecutive session yesterday behind continued investor optimism on the Bangko Sentral ng Pilipinas’ potential rate cut.
Meanwhile, the peso is trading precariously close to an all-time low against the dollar, weakening by 10 centavos to close at 58.91 yesterday from 58.81 previously.
It marked the peso’s weakest close in 25 months or since its 58.94 close on Oct. 20, 2022.
The benchmark Philippine Stock Exchange index inched closer to a return to the 7,000 level as it surged by 2.53 percent or 172.44 points to 6,975.63.
The broader All Shares index likewise saw an increase of 0.92 percent or 35.23 points to 3,847.41.
“The market was mainly driven by the reassurance from the Bangko Sentral ng Pilipinas that monetary policy is still in its easing phase with a possibility of a 100 basis points rate cut in total next year,” Philstocks Financial research manager Japhet Tantiangco said.
“Foreign investors also turned buyers on the net helping the market climb,” he said.
According to Tantiangco, net foreign buying for the day amounted to P82.21 million.
Net value turnover, however, thinned further to P4.82 billion from P4.99 billion the previous session.
All counters were in the green, led by holding firms, which soared by 3.26 percent. Financials also posted a strong performance with a 2.95-percent jump.
RCBC chief economist Michael Ricafort said the peso weakened after the Philippines posted a balance of payments deficit of $724 million in October, a reversal of the $3.53 billion surplus in September.