Index hits 2-yr high on rate cut hopes

MANILA, Philippines — Share prices sustained their climb yesterday, pushing the benchmark index to a fresh high in over two years on rate cut hopes.

The Philippine Stock Exchange index (PSEi) ended yesterday’s session by one percent higher or 71.16 points at 7,175.36.

This was the PSEi’s highest close since March 31, 2022 when it finished at 7,203.47.

The broader All Shares index also finished in the green, rising by 0.79 percent or 30.17 points to settle at 3,850.17.

“The local bourse extended its rally as optimism grew around an expected rate cut from the US Federal Reserve’s policy meeting,” Luis Limlingan of Regina Capital said.

Limlingan said market sentiment currently prices in a 67 percent likelihood of a 50-basis-point cut by the Fed based on CME Group’s FedWatch tool.

For his part, Philstocks Financial research manager Japhet Tantiangco said investors showed appreciation to the overseas Filipino workers’ cash remittance data for July and the Board of Investments’ approved investment pledges, both of which have shown good figures.

“Hopes of a dovish monetary policy outlook for both the Federal Reserve and the Bangko Sentral ng Pilipinas also helped in keeping the market’s upward movement,” Tantiangco said.

Net value turnover improved to P6.28 billion from the previous day’s P3.78 billion.

All sectors were in the green, except for services, which declined by 0.76 percent.

Holding firms saw the biggest increase at 1.85 percent, followed by the property index with a 1.48-percent rise.

Market breadth, however, was negative as decliners edged out advancers, 117 to 94, while 41 issues were unchanged.

Ayala Corp. posted the highest jump among index members at 4.1 percent, while Converge ICT Solutions registered the largest drop at 2.89 percent.