Local stocks climb as traders welcome BSP, Fed easing moves
The Philippine Stock Exchange Index (PSEi) recovered from the previous day’s decline, adding 30.06 points, or 0.50 percent, to close at 5,990.00 on Thursday, Dec. 11.
The advance followed expected rate cuts from both the US Federal Reserve and the Bangko Sentral ng Pilipinas (BSP).
Banks led the charge, while the Property and Mining sectors lagged. Trading activity picked up, with volume improving to 864 million shares valued at ₱7.06 billion. Losers edged out gainers 103 to 100, with 62 stocks unchanged.
“The local bourse edged higher as the market digested the recent rate cuts from both the Fed and the BSP,” said Luis Limlingan, Managing Director at Regina Capital Development Corp. “Investors welcomed the move, viewing it as supportive for growth and liquidity.”
He added that “overall sentiment improved as traders positioned ahead of upcoming economic data.”
The local market's rise was supported by the BSP’s policy easing, coupled with positive cues from Wall Street following the Federal Reserve's decision, noted Philstocks Financial Research Manager Japhet Tantiangco.
Rizal Commercial Banking Corp. Chief Economist Michael Ricafort cited the specifics of the central bank moves. The PSEi gained after the Fed’s 0.25 percentage-point cut, which brought the target Fed Funds rate to 3.5 percent to 3.75 percent—the lowest level in more than three years, or since October 2025.
Ricafort also noted the BSP’s 0.25 percentage-point reduction, which lowered the policy rate to 4.50 percent, its lowest level in more than three years, or since September 2022.