Shares gain anew on rate cut hopes

March 22, 2024 | 12:00am

MANILA, Philippines — The stock market advanced for a second consecutive session yesterday, buoyed by indications that the vs Federal Reserve will make interest rate cuts later this year.

The Philippine Stock Exchange index surged 1.55 percent or 106.45 points to finish at 6,963.22.

The broader All Shares index likewise soared by 1.21 percent or 43.14 points to end at 3,615.24.

“Philippine stocks surged well above the 6,900 level as the Fed reaffirmed its plan for three interest rate cuts this year,” Luis Limlingan of Regina Capital said.

Philstocks Financial research and engagement officer Mikhail Plopenio said investors took positive cues from Wall Street’s record high performance overnight amid the renewed rate cut hopes.

“In the recent FOMC meeting, Fed Chair Jerome Powell stated that the Federal Reserve maintains its 75-basis point reduction forecast for this year as US inflation remains on track toward its target,” Plopenio said.

“Boosting the sentiment was BSP Governor Eli Remolona’s statement saying that the BSP may even cut rates faster than the Fed,” he added.

Plopenio said net value turnover yesterday stood at P5.46 billion, higher than the year-to-date average of P5.02 billion.

“Lastly, foreign funds gave the bourse a lift as foreigners were net buyers with net inflows amounting to P433.40 million,” he said.

All sectors went up, led by services which skyrocketed by 4.98 percent.

Industrial and property also rose by more than one percent each.

Market breadth was positive as advancers pummeled decliners, 124 to 77, while 43 issues were unchanged.

ICTSI led the index members with a 9.28 percent jump, while Wilcon Depot dropped the most by 1.30 percent.