The local stock benchmark surged past the 6,800 level after the Bangko Sentral finally cut the key policy rate after months of market speculation.
The main index leaped by 165.53 points or 2.47 percent to close at 6,858.44 as the Services sector led the rally across the board. A total of 629 million shares worth P5.75 billion changed hands as gainers beat losers 136 to 71 with 44 unchanged.
“Philippine shares rallied as investors reacted to the BSP interest rate decision. The market closed just before the BSP announced a 25 basis point cut yesterday—the first rate reduction in nearly four years,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
Philstocks Financial Research Manager Japhet Tantiangco noted that, "The move is taken as the start of the BSP’s monetary policy easing phase which would help the corporate sector and boost overall economic growth."
Limlingan added that, “The positive sentiment was reinforced as Wall Street finished in the green as investors reacted to stronger-than-expected retail sales and a decline in weekly jobless claims, easing concerns about a potential recession that drove a global sell-off earlier this month.”