Manila: The Philippine Stock Exchange index (PSEi) surged by 1.31 percent to close at 7,458.74 on Thursday, as the Bangko Sentral ng Pilipinas (BSP) indicated the possibility of a policy rate cut in the fourth quarter of the year. The broader All Shares index also increased by 0.98 percent to 3,978.10.
According to Philippines News Agency, the PSEi reached its highest level in more than two and a half years, following BSP Governor Eli Remolona Jr.’s signal of a potential 50-basis point rate cut. The cuts are expected to be divided between the October 17 and December 19 policy meetings. Additionally, Department of Finance Secretary Ralph Recto reiterated the potential cut, citing improved inflation prospects.
Five out of six sectors posted gains, led by Financials, which climbed 2.59 percent to 2,384.69, followed by Holding Firms, Services, Industrial, and Property. The only sector that declined was Mining and Oil, which fell by 0.34 percent. The trading session saw 111 winners, 80 losers, and 61 counters unchanged.
Meanwhile, the peso closed at 55.97 to the US dollar, slightly down from Wednesday’s close of 55.88. Trading volume also decreased to USD1.37 billion from the previous day’s USD1.54 billion.