Connect with us

Hi, what are you looking for?

Captain Of Success
Top Stories

Stock Markets

Stocks rebound on dovish hints from BSP chief

BW FILE PHOTO

PHILIPPINE SHARES rebounded on Thursday, with the main index hitting a new over two-year high, after dovish comments from the Bangko Sentral ng Pilipinas (BSP) governor.

The Philippine Stock Exchange index (PSEi) jumped by 1.3% or 96.12 points to end at 7,458.74 on Thursday, while the broader all shares index rose by 0.97% or 38.46 points to 3,978.10.

Thursday’s close was the PSEi’s best finish in over 31 months or since it ended at 7,502.48 on Feb. 9, 2022.

“After a brief pullback on Wednesday, the local market bounced back this Thursday. Optimism was fueled by cues of possible rate cuts from the BSP,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

The Monetary Board could slash rates by 50 basis points (bps) more this year via 25-bp cuts at its Oct. 17 and Dec. 19 meetings, BSP Governor Eli M. Remolona, Jr. said on Wednesday.

The BSP on Aug. 15 began its easing cycle with a 25-bp reduction, bringing its policy rate to 6.25% from the over 17-year high of 6.5%. This was the first time it cut rates in nearly four years.

If the Monetary Board delivers rate cuts worth 50 bps in its last two meetings, it would bring the benchmark rate to 5.75% by end-2024.

“Local shares recovered from a two-day slump, buoyed by the Asian Development Bank’s (ADB) decision to maintain its gross domestic product (GDP) growth forecast for the Philippines at 6% for 2024 and 6.2% for 2025,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “The ADB attributed this outlook to easing inflation and expected policy adjustments that could stimulate domestic demand.”

The multilateral bank’s Philippine GDP growth projection for this year is at the low end of the government’s 6-7% goal, while the forecast for 2025 is below its 6.5-7.5% target.

Philippine economic growth averaged 6% in the first half. To meet the lower end of the government’s target for the year, GDP must expand by 6% this semester.

Majority of sectoral indices closed higher on Thursday. Financials surged by 2.59% or 60.21 points to 2,384.69; holding firms rose by 1.07% or 67.08 points to 6,328.70; services went up by 0.94% or 21.03 points to 2,255.78; industrials climbed by 0.83% or 81.16 points to 9,821.05; and property inched up by 0.37% or 11.05 points to 2,988.45.

Meanwhile, mining and oil dropped by 0.34% or 30.19 points to 8,743.01.

“San Miguel Corp. was the day’s top index gainer, jumping 6.11% to P89.50. Semirara Mining and Power Corp. was at the bottom, falling 1.48% to P33.35,” Mr. Tantiangco said.

Value turnover rose to P12.53 billion on Thursday with 1.18 billion shares changing hands from the P8.05 billion with 1.07 billion issues traded on Wednesday.

Advancers outnumbered decliners, 111 to 80, while 61 names closed unchanged.

Net foreign buying surged to P4.79 billion on Thursday from P921.22 million on Wednesday. — R.M.D. Ochave

    You May Also Like

    Stock Markets

    RUELLE CANINO (left) and GM Janelle Mae Frayna (right) — PHILSTAR FILE PHOTO BUDAPEST, Hungary — GM Janelle Mae Frayna and wonder girl Ruelle...

    Stock Markets

    By Justine Irish D. Tabile, Reporter INFORMATION TECHNOLOGY and business process management (IT-BPM) companies in the Philippines face a shortage in artificial intelligence (AI)-equipped...

    Finance

    Running a business in the UK comes with a myriad of responsibilities, and understanding your tax obligations is one of the most critical aspects....

    Finance

    Labour’s plan to overhaul the non-dom tax regime could cost the UK government up to £1 billion as wealthy individuals flee the country, a...

    Disclaimer: CaptainOfSuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
    The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 Captain Of Success. All Rights Reserved.