The main composite index of the Philippine Stock Exchange sustained its upward momentum Tuesday ahead of the much-awaited policy meeting of the US Federal Reserve.
While investors expect the Fed to implement a rate cut, analysts said the market is split between a 25-basis-point or 50-bps rate cut.
The bellwether PSE index ended at 7,175.36, up 71.16 points, or 1 percent, from Monday, while the broader all-shares index picked up 30 points, or 0.79 percent, to reach 3,850.17.
“Hopes of a dovish monetary policy outlook for both the Federal Reserve and the Bangko Sentral ng Pilipinas also helped in the keeping the market’s upward momentum,” Philstocks Financial Inc. research head Japhet Tantiangco said.
Investor sentiment was also boosted by positive cash remittances from overseas workers in the first seven months of the year.
Cash remittances grew 3.1 percent year-on-year to $3.08 billion in July 2024, the highest in seven months according to latest data from the BSP.
This pushed the peso to 55.69 a dollar Tuesday, up from Monday’s closing of 55.8.
Among the stock market sectoral indices, holding firms went up the most, increasing by 1.85 percent, followed by property, rising by 1.48 percent. Industrial climbed 1.39 percent, while mining and oil and financials advanced by 1.23 percent and 0.77 percent respectively.
Value turnover reached P6.28 billion, as foreign investors remained net buyers, with net inflows reaching P806 million. Decliners edged gainers, 117 to 94.
Ayala Corp. was the top index gainer, rising by 4.1 percent to P660, while Converge ICT Solutions Inc. was at the bottom, declining by 2.89 percent to P16.14.
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