Local stocks rose as investors anticipate a rate cut by the Bangko Sentral ng Pilipinas, which is seen to lower the cost of money and boost consumer and corporate spending.

The main index added 19.58 points or 0.31 percent to close at 6,357.01 on Thursday, June 19, as Banks led the advance while Services and Miners retreated. Volume declined to 983 million shares worth P4.43 billion as losers edged out gainers 91 to 90 with 57 unchanged.

“Philippine shares closed moderately higher ahead of the BSP decision and right after the Fed held rates steady,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “The committee also signaled two cuts this year, while warning of slower growth and higher inflation… Trump, meanwhile, claimed Iran may send a delegation for talks.”

“Back home, Philippine shares were bought up before the FTSE rebalancing tomorrow, and amid Middle East tensions and ahead of the BSP’s policy meeting, where the street widely expects a 25bp rate cut,” Limlingan said.

Philstocks Financial Research Manager Japhet Tantiangco said “The local market rose on expectations that the Bangko Sentral ng Pilipinas would cut their policy rates in their Monetary Board meeting today. Investors are also looking forward to the two policy rate cuts that the Federal Reserve has projected for this year.”

Rizal Commercial Banking Corporation Chief Economist Michael L. Ricafort said the PSEi corrected slightly higher ahead of the widely expected 0.25 BSP rate cut to 5.25 percent amid benign inflation as this could further reduce borrowing costs/funding costs by listed companies, consumers, institutions and other borrowers.