Rate cut optimism lifts stocks

MANILA, Philippines — Share prices opened the week on a high note fueled by optimism for an interest rate cut by August.

The benchmark Philippine Stock Exchange index soared back above the 6,500-level, rising by 0.56 percent or 36.68 points to close at 6,529.43.

The broader All Shares index also ended higher as it added 0.44 percent or 15.43 points to 3,524.42.

“Philippine shares continued their upward trajectory as in the main index closed above 6,500 as investors brace themselves for another week that could give hints to the timing of the Fed’s rate cut,” Luis Limlingan of Regina Capital said.

Claire Alviar of Philstocks Financial said yesterday’s climb was driven by hopes for an interest rate cut by August which continued to boost sentiment, following the easing of the June inflation to 3.7 percent from 3.9 in May.

Alviar said the performance of the US markets last Friday also provided optimism.

“Moreover, foreign investors contributed to today’s gain, registering a net inflow of P143.69 million,” she said.

Net market value turnover was off to a strong start at P4.81 billion.

The sector gauges were a mixed bag with financials leading the charge with a 2.66 percent surge.

BDO and Bank of the Philippine Islands were among the biggest gainers among the index members, increasing by 4.47 percent and 2.94 percent, respectively.

Services, on the other hand, suffered the biggest decline at 0.50 percent.

Market breadth was negative as decliners prevailed over advancers, 104 to 95, while 42 issues were unchanged.