Local share prices rose on the back of gains in US stocks due to rate cut hopes.
The main index added 27.23 points or 0.42 percent to close at 6,556.66 as Conglomerates led the advance while Banks and Miners retreated. Volume rose to 767 million shares worth P6.74 billion as gainers upset losers 97 to 90 with 56 unchanged.
“Philippine shares resumed their climb as the market inched closer to the 6,600 level, getting a boost from the overnight performance of the US,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He noted that “stocks across the region have been bought up under the assumption that the Federal Reserve could start cut its benchmark interest soon, especially should the latest US CPI this week allow for this.”
Philstocks Financial Research and Engagement Officer Mikhail Plopenio said “The local market rose as rate cut hopes were strengthened due to the dovish comments from Bangko Sentral ng Pilipinas Governor Eli M. Remolona Jr.
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.