The local bourse surged further as the Bangko Sentral ng Pilipinas (BSP) cued a possible third cut in interest rates, while the peso weakened against the US dollar to 58.8 yesterday.
Regina Capital managing director Luis Limlingan, however, noted that although rate cuts are likely, a pause was not ruled out.
“The local bourse managed to settle in the green but gains were trimmed as investors digested the latest statement from the BSP regarding rate cuts,” he said.
“As per BSP Gov. Eli Remolona, a pause in interest rate cuts is possible in the next rate-setting meeting in December.”
The Philippine Stock Exchange index (PSEi) soared by 0.62 percent to 6,803.19 while All Shares rose by 0.33 percent to 3,812.18.
Except for Holding Firms, which shed 0.84 percent, all sectoral indices closed in the positive territory.
Services led all sectors, up by 1.30 percent; followed by Property, 1.22 percent; Mining and Oil, 0.90 percent; Industrial, 0.87 percent; and Financials, 0.81 percent.
Decliners led advancers at 111 to 85, leaving 63 indices unchanged.
The peso, meanwhile, depreciated to 58.81 against the greenback, weaker than Monday’s 58.68.
It opened at 58.65, and traded between 58.83 and 58.6, bringing the day’s average to 58.68.*PNA
