Share prices ended higher Thursday tracking the optimism overseas in anticipation of a start in policy rate cuts.
The peso closed up.
The Philippine Stock Exchange index was up 74.74 points to 6,693.83, a 1.13 percent hike.
The broader All Shares index was up 31.47 points or 0.87 percent to 3,629.18.
Gainers edged losers 104 to 75 with 50 stocks unchanged. Trading turnover reached P4.39 billion.
The peso closed at 58.333 to the dollar, up from 58.365.
The currency opened at 58.32 and hit a high of 58.26 and a low of 58.385. Trading turnover reached $1.17 billion.
Analysts now expect Asian central banks to start easing policy stances in the near-term as inflation is set to remain low.
The Philippines is likely to kick off the rate-cutting cycle, followed by South Korea, India and Taiwan.
“We think the central bank in the Philippines will be the next to loosen policy and have pencilled in an August cut,” analysts from Capital Economics wrote.
“Overall, we expect most central banks to cut rates by 50 bps (basis points) to 200 bps between now and the end of next year,” they said.
Mikhail Philippe Plopenio, analyst at Philstocks Financial Inc., said investors took cues from Wall Street overnight hike after the US Fed “signaled that a rate cut in September could be possible.”
“A rate cut by the Federal Reserve is seen to somehow give more room for the BSP (Bangko Sentral ng Pilipinas) to ease its own policy,” he said.
Most actively traded Ayala Land Inc. was down P0.10 to P29.40. BDO Unibank Inc. was up P6.70 to P143.70. International Container Terminal Services Inc. was up P4 to P360. SM Investments Corp. was down P1 to P907. Metropolitan Bank and Trust Co. was down P0.70 to P68. Philippine Seven Corp. was up P6.15 to P68.20. AREIT Inc. was up P1 to P38. ACEN Corp. was steady at P5.49. Bank of the Philippine Islands was up P3.50 to P124.80. GT Capital Holdings Corp. was up P10 to P600.
