PSEi climbs as BSP signals possible rate cut

PHILIPPINE STOCKS rose on Wednesday, bolstered by bargain-hunting and optimism that the Bangko Sentral ng Pilipinas (BSP) could cut policy rates in December, a move investors hope will support growth amid slowing domestic demand.

- By Alexandria Grace C. Magno

The Philippine Stock Exchange index (PSEi) added 0.99% or 57.05 points to close at 5,813.71, while the broader all-share index gained 0.62% or 20.29 points to 3,251.84.

“The local bourse ended higher, still driven by bargain-hunting,” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a Viber message. “Moreover, investor sentiment improved after the BSP signaled the possibility of another rate cut by the end of the year. This expectation continued to support buying activity in today’s session.”

BSP Governor Eli M. Remolona, Jr. on Tuesday said a reduction at the Monetary Board’s Dec. 11 meeting is possible, likely in a modest 25-basis-point (bp) step.