August 17, 2024 | 12:00am
MANILA, Philippines — The stock market zoomed above the 6,800 level yesterday, while the peso slumped back to the 57-to-$1 level following the much-awaited rate cut from the Bangko Sentral ng Pilipinas (BSP).
The Philippine Stock Exchange index yesterday snapped its two-day decline, surging by 2.31 percent or 154.46 points to close at 6,847.37.
Also finishing the week strong was the broader All Shares index, which soared by 1.74 percent or 63.27 points to 3,691.42.
“Shares rallied as investors reacted to the BSP interest rate decision. The BSP announced a 25-basis-point cut on Thursday, lowering the key policy rate to 6.25 percent — the first rate reduction in nearly four years,” Luis Limlingan of Regina Capital said.
Philstocks Financial research manager Japhet Tantiangco said the rate cut is taken as the start of the BSP’s monetary policy easing phase which would help the corporate sector and boost overall economic growth.
Tantiangco said the positive sentiment was also supported by the spillovers from Wall Street’s rally overnight amid easing recession worries in the US.
He said yesterday’s trading was active with a net value turnover amounting to P6.66 billion, higher than the year-to-date average of P4.92 billion.
All six sectoral gauges were in the green, five of which grew by more than one percent.
Services posted the largest jump at 3.12 percent, followed by financials with a 2.15-percent gain.
Market breadth stayed positive as advancers pounded decliners, 134 to 68, while 50 issues were unchanged.
Meanwhile, the local currency shed 34.5 centavos to close at 57.245 to $1 from Thursday’s 56.9 to $1, based on data from the Bankers Association of the Philippines.
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