Philippine share prices bounced back on Wednesday as investors positioned ahead of the Bangko Sentral ng Pilipinas’ (BSP) policy meeting today, Thursday, when a key rate cut is widely expected.
The Philippine Stock Exchange index (PSEi) climbed 2.08 percent, or 128.1 points, to close at 6,273.34. The broader All Shares index added 1.26 percent, or 46.52 points, to 3,731.07.
“The market saw buyers take charge today after yesterday’s dip. Investors likely viewed prices as bargain opportunities, pushing the market higher, together with expectations for the BSP meeting,” Luis Limlingan, managing director at Regina Capital Development Corp., said.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said investors are betting on a 25-basis-point cut, which could lower financing costs for listed companies and support the broader economy.
Trading was active with 890.26 million shares changing hands across 89,617 trades. Total value turnover reached P8.65 billion.
Market breadth was positive, with 117 gainers against 100 losers, while 39 stocks were unchanged.
Foreign funds were net sellers by P41.42 million, with total purchases of P4.14 billion and sales of P4.18 billion.
By sector, banks led the rally with a 3.53 percent gain, while conglomerates were the lone laggards, slipping 0.52 percent, Philstocks Financial Inc. Research Manager Japhet Tantiangco said.
The BSP’s Monetary Board is set to announce its policy decision Thursday afternoon, with markets watching closely for signals on borrowing costs. Analysts noted the decision comes as inflation pressures ease and global central banks pivot to looser stances, setting the stage for a potentially more supportive environment for equities.
