MANILA — The Philippine Stock Exchange index (PSEi) edged closer to the 7,000 level on Tuesday, buoyed by the recent interest rate cut by the Bangko Sentral ng Pilipinas (BSP) and the country’s credit rating upgrade, while the peso also strengthened against the dollar.
According to Philippines News Agency, the PSEi gained 54.89 points to close at 6,944.76, with the broader All Shares index rising by 22.64 points to 3,729.09. According to Luis Limlingan, managing director of Regina Capital Development Corp., investor confidence was bolstered by strong earnings reports, the BSP’s 25-basis-point rate cut, and Japan’s Rating and Investment Information Inc. upgrading the Philippines’ investment grade.
“Philippine shares broke into the 6,900 level and now are just a stone’s throw away from the 7,000 level with investors continuing to buy into the strong earnings,” Limlingan said.
In the U.S., equities had another positive day as markets recovered from earlier sell-offs, with traders closely watching for remarks from Federal Reserve Chair Jerome Powell expected later this week. Gold prices saw a slight decline as traders locked in profits.
Despite the gains in the PSEi, decliners outnumbered advancers at 120 to 89, with 51 issues remaining unchanged. The peso closed at 56.55 to the dollar, slightly stronger than its 56.64 finish on Monday, with a trading volume of USD1.5 billion, down from USD1.6 billion the previous day.