The local stock market made a strong bounce after a bout of profit-taking as the country’s economic outlook turns rosier.
The main index jumped 96.12 points or 1.31 percent to close at 7,458.74 as Banks led the recovery while Miners lagged behind. Volume rose to 1.18 billion shares worth P12.53 billion as gainers beat losers 111 to 80 with 61 unchanged.
“Local shares recovered from a two-day slump, buoyed by the Asian Development Bank's decision to maintain its GDP growth forecast for the Philippines at six percent for 2024 and 6.2 percent for 2025,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “The ADB attributed this outlook to easing inflation and expected policy adjustments that could stimulate domestic demand.”
"After a brief pull back on Wednesday, the local market bounced back this Thursday. Optimism was fueled by cues of possible rate cuts from the Bangko Sentral ng Pilipinas," said Philstocks Financial Research Manager Japhet Tantiangco.
According to Bangko Sentral ng Pilipinas Governor Eli Remolona, the BSP may still cut policy rates in the fourth quarter of this year, 25 basis points each in their last two meetings.