Share prices and the peso closed up as investors bet on a rate cut in the policy rate very soon.
The Philippine Stock Exchange index was up 27.23 points to 6,556.66, a 0.42 percent hike.
The broader All Shares index was up 13.82 points or 0.39 percent to 3,538.24.
Gainers edged losers 90 to 97 with 56 stocks unchanged. Trading turnover reached P6.74 billion.
The peso closed at 58.44 to the dollar, up from 58.502 on Monday.
The currency opened at 58.54 and hit a high of 58.43 and a low of 58.56. Trading turnover reached $1.18 billion.
Asian currencies were subdued on Tuesday while regional stocks ticked up, as investors globally awaited comments from US Federal Reserve Chair Jerome Powell to assess the prospects of a rate cut in September.
The Bangko Sentral ng Pilipinas (BSP) said it has more scope to cut interest rates at its next meeting in August after annual inflation slowed in June, its Governor Eli Remolona said. The peso was 0.2 percent higher.
Mikhail Philippe Plopenio, analyst at Philstocks Financial Inc., said investors are betting on the BSP’s likely rate cut due to the dovish comments from Remolona.
“The BSP governor stated that the central bank cannot wait too long before cutting interest rates as this poses downside risks to the economy’s output. He also said that a rate cut by the third and fourth quarter is likely. The rate cut narrative seems to boost investors’ confidence as many are anticipating it since the start of the year,” Plopenio said.
Most actively traded Jollibee Foods Corp. was down P2.20 to P230.80. BDO Unibank Inc. was down P4.10 to P140.90. Ayala Land Inc. was up P0.20 to P29.40. International Container Terminal Services Inc. was up P5 to P360. SM Investments Corp. was up P12 to P857. SM Prime Holdings Inc. was up P0.30 to P28.80. Ayala Corp. was down P1.50 to P566.50. Bank of the Philippine Islands was up P0.50 to P123. Metropolitan Bank and Trust Co. was up P0.55 to P65.65. Universal Robina Corp. was up P3.60 to P115.50.
