Philippine equities edged higher, bucking a broad retreat across emerging Asian markets, as local investors priced in monetary easing ahead of what has been a widely expected policy rate cut by the Bangko Sentral ng Pilipinas (BSP) on Thursday.
The benchmark PSEi rose 0.31 percent to close at 6,357.01, supported by a rally in financials. The broader All Shares gained 0.17 percent.
Market breadth was mixed, with 91 decliners and 90 advancers, while 57 stocks were unchanged.
Turnover was relatively thin, with total value reaching P4.43 billion across 983 million shares and over 60,000 trades.
Foreign investors were net buyers by P353 million, signaling renewed confidence in Philippine assets amid a more dovish domestic policy backdrop.
Minutes after the close, the BSP announced a 25-basis-point cut, lowering its key policy rate to 5.25 percent — its second reduction this year, as inflation pressures moderated and growth concerns took precedence.
“The market priced in a likely BSP rate cut, while also factoring in the (US) Fed’s guidance of two possible rate reductions this year,” Philstocks Financial said in its post-market commentary.
The banking sector led gains, rising 1.09 percent, while mining stocks fell 1.12 percent, reflecting ongoing commodity price volatility.
Seth Pangan, trader at Diversified Securities Inc., said the BSP’s decision could provide a near-term tailwind for domestic liquidity and sentiment, particularly as inflation expectations remain anchored and rice prices ease.
“Investors are shifting focus back to fundamentals, with attractive valuations and policy support outweighing geopolitical concerns,” he said.
The local market outperformed broader emerging Asian equities, which fell on the day amid renewed investor caution over the Israel-Iran conflict and risks of US entanglement.
The MSCI Asia ex-Japan EM index slid 1.3 percent, led by Indonesia (-1.6%), Taiwan (-1.4%), and Malaysia (-0.6%), as capital rotated out of risk assets. (With a report from Reuters)
