PSEi climbs above 6,300 mark on Fed cut hopes

PHILIPPINE SHARES jumped on Wednesday as the market tracked gains on Wall Street after the July US consumer inflation data released overnight bolstered expectations of a September rate cut by the US Federal Reserve.

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The benchmark Philippine Stock Exchange index (PSEi) rose by 0.56% or 35.24 points to close at 6,325.09, while the broader all shares index went up by 0.35% or 13.37 points to 3,764.64.

“The local market extended its rise this Wednesday on the back of positive cues from Wall Street. This comes as the US’ July inflation rate came in at 2.7%, unchanged from the prior month and below expectations, raising hopes that the Federal Reserve will cut policy rates in their next meeting,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“The PSEi closed at 6,325.09, up by 0.56%, as investors’ confidence was renewed after the index’s strong performance [on Tuesday] and the influx of more corporate earnings reports,” Regina Capital Development Corp.