PSEi soars to 6,400 level on BSP rate cut hopes

THE MAIN INDEX soared to the 6,400 level on Monday to hit a near six-month high amid growing hopes for another rate cut from the Bangko Sentral ng Pilipinas (BSP) next month.

- Alexandria Grace C. Magno

The Philippine Stock Exchange index (PSEi) surged by 1.13% or 71.82 points to end at 6,419.96, while the broader all shares index increased by 0.94% or 34.13 points to 3,641.13.

This was the PSEi’s best finish in nearly six months or since it closed at 6,444.16 on July 24.

“Philippine equities have officially risen back to index levels seen prior to the flood control fiasco, driven by the dovish tone sung by the BSP chief, hinting at a high chance of a 25-basis-point (bp) cut this upcoming February meeting,” AP Securities, Inc. said in a market note.