PSEi extends gains on prospects of further monetary easing
The local stock market started the week on firmer footing, with investor sentiment continuing to be supported by signs that the central bank may cut rates further.
The main index added 21.3 points, or 0.35 percent, to close at 6,058.02 on Monday, Dec. 15. The mining and property sectors led the advance, although the services counter dropped.
Volume was higher at 748.41 million shares worth ₱6.39 billion. Gainers beat losers—131 to 81, with 50 unchanged.
Regina Capital Development Corp. managing director Luis Limlingan said, “The Philippine Stock Exchange (PSEi) started the week in the green as buying pressure persisted, allowing the index to hold above the 6,000 level... Gains were sustained despite a lowered growth outlook and slower remittance growth.”
“The local market extended its rise backed by hopes of further monetary policy easing. This is as Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. signals the possibility of one more policy rate cut by 2026,” said Philstocks Financial Inc. research manager Japhet Tantiangco.
Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said the PSEi gained for the third straight trading day after recent dovish signals from Remolona that large banks’ reserve requirement ratio (RRR) could be reduced to about two percent within a year from the current five percent.
This is on top of the possibility of another 0.25-percent BSP rate cut in 2026 if economic recovery would take longer than expected.