August 23, 2024 | 12:00am
MANILA, Philippines — Indications of a potential rate cut next month by the US Federal Reserve provided the stock market with a huge boost ahead of a long break. The benchmark Philippine Stock Exchange index (PSEi) rose by 0.89 percent or 61.34 points to finish yesterday’s session at 6,961.96.
The broader All Shares index followed suit, climbing by 0.68 percent or 25.35 points to settle at 3,749.73.
Philstocks Financial research manager Japhet Tantiangco said investors took cues from Wall Street’s rally overnight, driven by the Federal Reserve’s July minutes of the meeting, which hinted at possible rate cuts by September.
Tantiangco said investors also cheered the strengthening of the local currency.
“Local shares concluded the shortened trading week in the green after the Fed’s July meeting minutes indicated a potential rate cut in September, boosting investor optimism. Most Fed officials signaled that easing monetary policy would be appropriate if economic data meets expectations, raising hopes for lower interest rates soon,” Luis Limlingan of Regina Capital said.
Net value turnover for the day improved to P5.02 billion from the previous day’s P4.75 billion.
Financials led the sectors with a 2.52-percent surge, while property and mining & oil were in the red, declining by 0.67 percent and 0.06 percent, respectively.
Market breadth was positive as advancers battered decliners, 117 to 80, while 43 issues were unchanged.
BDO Unibank posted the biggest gain among index members at 3.70 percent while ACEN lost the most at 4.76 percent.
Other most actively traded stocks were ICTSI (up 1.51 percent), BPI (up 2.63 percent), DigiPlus (up 4.23 percent), SM Investments (up 0.32 percent) and SM Prime (down 0.17 percent).
Trading on the PSE will resume on Tuesday, as today and Monday were declared as non-trading days.
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