PHILIPPINE SHARES surged on Wednesday, with the bellwether rising to the 6,200 level, on continued bargain hunting and as inflation was steady in January, which would support further rate cuts by the Bangko Sentral ng Pilipinas (BSP).
The Philippine Stock Exchange index (PSEi) jumped by 3.15% or 192.02 points to close at 6,281.08 on Wednesday, while the broader all shares index rose by 2.17% or 78.73 points to 3,696.66.
“The local market extended its rally this Wednesday as investors continued with their bargain hunting,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “Investors also cheered the Philippines’ January inflation figure, which came in at 2.9%. The tamed inflation number sets expectations that the Bangko Sentral ng Pilipinas will continue with their monetary policy easing.”
“Philippine shares made another furious comeback as the latest CPI (consumer price index) came within many analysts’ expectations, paving the way for more leeway for the BSP to time the cutting of interest rates,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
The January CPI of 2.9% was steady from December but up from 2.8% in the same month in 2024, the Philippine Statistics Authority reported on Wednesday.
This was within the BSP’s 2.5%-3.3% forecast for the month but was a tad higher than the 2.8% median estimate in a BusinessWorld poll of 16 analysts.
The BSP said following the data release that it will continue to monitor risks to the inflation outlook and maintain a “measured approach” to policy easing.
BSP Governor Eli M. Remolona, Jr. last week said that a rate cut is “on the table” at the Monetary Board’s Feb. 13 policy meeting, adding that they may slash benchmark interest rates by a cumulative 50 basis points (bps) this year in a gradual manner as “policy insurance” against risks.
The BSP has cut borrowing costs by 75 bps since kicking off its easing cycle in August last year, bringing the policy rate to 5.75%.
“Sentiment also received an additional push as Wall Street edged higher on Tuesday as investors sought stability amid fresh global trade developments,” Mr. Limlingan added.
All sectoral indices closed in the green on Wednesday. Property surged by 4.80% or 110.38 points to 2,405.82; holding firms went up by 4.09% or 205.04 points to 5,216.62; industrials leaped by 2.53% or 213.87 points to 8,667.06; mining and oil rose by 2.39% or 171.23 points to 7,328.26; services climbed by 2.19% or 44.2 points to 2,059.16; and financials jumped by 1.68% or 38.21 points to 2,304.88.
Value turnover increased to P7.50 billion with 673.73 million shares exchanged from the P7.35 billion with 700.47 million issues traded on Tuesday.
Advancers beat decliners, 127 versus 68, while 50 names were unchanged.
Net foreign buying went up to P324.94 million on Wednesday from P47.6 million on Tuesday. — Revin Mikhael D. Ochave
