Rate cut, bargain hunting end market slump

MANILA, Philippines — The local stock market snapped its seven-day losing streak as investors found inspiration from the Bangko Sentral ng Pilipinas (BSP)’s latest policy rate cut.

The benchmark Philippine Stock Exchange index (PSEi) finally broke out of its recent slump, inching up by 0.17 percent or 10.78 points to end at 6,406.38.

The broader All Shares index also finished the week in the positive territory, increasing by 0.11 percent or 4.08 points to settle at 3,675.83.

“The PSEi finally corrected slightly higher after declining for seven straight trading days after the latest signals from BSP Governor (Eli) Remolona Jr. about being open to another rate cut in its first rate-setting meeting in 2025, “ RCBC chief economist Michael Ricafort said.

Aside from digesting the BSP’s latest policy rate cut, investors also hunted for bargains, according to Philstocks Financial research manager Japhet Tantiangco.

“Gains were trimmed in the final minutes, however, as investors were still moving cautiously. Foreigners were still net sellers with net outflows at P777.85 million,” Tantiangco said.

Net value turnover was strong at P6.76 billion, up from the previous day’s P5.86 billion.

Only two sectors were in the red, while the rest finished higher, led by mining and oil with a 1.56-percent jump.

Financials fell by one percent, while property declined by 0.40 percent.

Advancers knocked down decliners, 101 to 87, while 49 issues were unchanged.

ICTSI was yesterday’s top traded company, climbing by 1.3 percent to P390 per share, followed by Ayala Land with a 0.4-percent decline to P24.80.

Monde Nissin topped the index members with a 9.6-percent surge, while Manila Electric Co. lost the most with a 2.71-percent drop.