Fed rate cut hopes buoy Philippine stocks

MANILA, Philippines — Share prices continued to rise yesterday amid heightened optimism over a rate cut by the US Federal Reserve.

The Philippine Stock Exchange index ended the week on a high note, rising by 0.59 percent or 38.99 points to settle at 6,648.23.

The broader All Shares index followed suit as it added 0.58 percent or 20.54 points to finish at 3,576.22.

Claire Alviar of Philstocks Financial said the local bourse climbed as the latest US inflation rate increased the chance of the Federal Reserve reducing interest rates.

She said this also heightened the possibility of a rate cut from the Bangko Sentral ng Pilipinas.

“Philippine shares continued climbing as investors got more reassurance that the Fed would likely cut interest rates as inflation cooled down to three percent from 3.3 percent in May. Today’s moves also reflect investor optimism and highlight the influence of international market movements on local trading sentiments,” Regina Capital’s Luis Limlingan said separately.

Net market value turnover, however, thinned to P3.92 billion from the previous day’s P5.50 billion.

Most sectors were in the positive territory, led by services which surged by 1.64 percent. Industrial and mining & oil were both in the red, losing 0.63 percent and 0.21 percent, respectively.

Market breadth stayed positive as advancers edged out decliners, 93 to 83, while 50 issues were unchanged.

Wilcon Depot had the biggest gain among index members with 4.05 percent while ACEN lost the most with 3.14 percent.