Investor sentiment in the Philippine equity market remained positive on Friday, a day after the Bangko Sentral ng Pilipinas (BSP) implemented another 25-basis-point reduction in its key policy rates.
The benchmark Philippine Stock Exchange index (PSEi) rose 0.78 percent to close at 6,036.72, reclaiming the 6,000 level. In contrast, the broader All Shares Index declined by 0.54 percent to 3,434.94.
Equity Market Performance
All sectoral indices moved in line with the main index, led by Mining and Oil, which advanced 1.95 percent.
Other sectors also posted gains:
- Property increased by 1.46 percent
- Financials rose 1.05 percent
- Industrial gained 0.97 percent
- Holding Firms added 0.35 percent
- Services edged up 0.14 percent
Trading activity was moderate, with total volume reaching 1.68 billion shares and turnover amounting to PHP 7.28 billion. Market breadth was slightly negative, as decliners (96) outnumbered advancers (92), while 57 stocks closed unchanged.
Philstocks Financial Inc. noted in its market report that investors continue to welcome the BSP’s latest rate cut, which is expected to support efforts to re-accelerate economic growth.
Peso and Foreign Exchange Market
The Philippine peso weakened modestly against the US dollar, closing at 59.06 compared with the previous session’s close of 58.99.
The currency opened at 58.98, traded within a range of 58.95 to 59.15, and posted an average rate of 59.09. Foreign exchange turnover reached USD 1.65 billion, slightly lower than the nearly USD 1.7 billion recorded in the previous session.
Market Perspective
The day’s trading reflected a typical response to monetary easing: equity markets benefited from lower interest rates, while the currency faced mild depreciation pressure.
For investors, this serves as a reminder that policy rate cuts can have divergent effects across asset classes, highlighting the importance of monitoring equities, interest rates, and foreign exchange movements in combination.
Philippines Market Wrap by PinChuTV