THE MARKETS rose to the 6,500 level on Monday after the Bangko Sentral ng Pilipinas (BSP) governor signaled that he is open to a rate cut at their first policy meeting next year.
The Philippine Stock Exchange index (PSEi) rose 2% or 128.53 points to close at 6,534.91 on Monday, while the broader index of all shares rose 1.39% or 51.40 points to 3,727.23.
“The local market took a hit after hints from the Bangko Sentral ng Pilipinas that the policy rate may be cut at their first meeting in 2025,” Philstocks Financial, Inc. said. Senior Research Analyst Japhet Louis O. Tantiangco in a Viber message. “The recent recovery of the local currency against the US dollar has also given the market a boost.”
On Friday, BSP Governor Eli M. Remolona, ​​Jr. told Bloomberg that the Monetary Board is open to bringing in more rate cuts at their first meeting in 2025.
Mr. Remolona said the BSP remains simple and “not too complex or a little dovish.”
The Monetary Board, in its last review of the year on Thursday, cut interest rates by 25 basis points (bps) for the third consecutive meeting to bring the policy rate to 5.75% from 6%.
The Philippine central bank has cut borrowing costs by 75 bps so far since the start of its easing cycle in August.
The BSP chief’s comments also boosted the peso. On Monday, the local unit closed at P58.45 per dollar, up 36 cents from its close of P58.81 on Friday, Bankers Association of the Philippines data said. This was your best finish in a week or so since Dec. 12’s P58.24.
“The local market benefited from the positive growth of Wall Street last Friday driven by the US November personal expenditures index, which rose slightly more than expected,” added Mr. Tantiangco.
“Philippine stocks finally bounced back… as investors prepare for the final trading week of the year,” Regina Capital Development Corp. said. Head of Sales Luis A. Limlingan in a Viber message. “It will be a quiet and shortened trading week, with the remainder of the November budget to be released on Dec. 27. The Philippine stock market will be closed on Dec. 24 and 25 for Christmas Eve and Christmas Day, respectively.”
All industry indexes are closed on Monday. Industrials rose 2.97% or 264.21 points to 9,150.78; the commodity rose by 2.31% or 53.48 points to 2,368.11; mining and oil increased by 2.23% or 164.46 points to 7,526.29; participating firms increased by 1.78% or 98.59 points to 5,633.93; funds added 1.07% or 23.27 points to end at 2,179.86; and services jumped 1.02% or 21.20 points to 2,095.10.
Value turnover dropped to P4.2 billion on Monday with 713.21 million shares traded from P6.95 billion and 488.17 million shares traded on Friday.
The Advancers beat the rejects, 110 against 72, while 53 names were unchanged.
Total imports stood at P255.38 million on Monday compared to P777.85 million sold on Friday. – Revin Mikhael D. Ochave
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