PSEi gains as US Fed rate cuts loom

MANILA, Philippines — Investors yesterday prevented the local stock market from slumping for another day, as they went on a buying spree encouraged by news that the US Federal Reserve is poised to bring down interest rates in its meeting today (Wednesday night, Manila time).

The bellwether Philippine Stock Exchange index (PSEi) picked up by 1.51 percent or 91.31 points to settle at 6,148.74, as investors expect the Fed to cut rates in its meeting.

Likewise, the broader All Shares index rose by 0.97 percent or 35.63 points to end yesterday’s session at 3,706.2.

Regina Capital Development Corp. head of sales Luis Limlingan said investors acquired cheaper stocks following the PSEi’s decline on Monday.

“After the market closed in the red on Monday, buyers took control of today’s session as bargain hunting persisted. However, firm catalysts are still needed to determine whether this really marks the beginning of a true market recovery,” Limlingan said.

“Investor sentiment was lifted by the expectation of an upcoming interest rate cut, which slightly offset the concerns about slowing job growth,” he said.

Experts are anticipating the Fed to slash rates by 25 basis points in response to a weakening job market and the inflation impact of tariffs.

All counters were in the green, except for property, which declined by 0.44 percent.

Financials led the charge, climbing by 3.7 percent, followed by mining and oil with a 3.22-percent jump.

The PSEi saw P6.56 billion worth of shares change hands.

The winners outpaced the losers, 101 to 93, while 59 issues were unchanged.