Bargain hunting lifts PSEi before rate decision
STOCKS closed higher on Wednesday as investors bought cheap stocks after the market鈥檚 three-day slide and before the Bangko Sentral ng Pilipinas鈥 (BSP) policy meeting, where a rate cut is widely expected.
The benchmark Philippine Stock Exchange index (PSEi) rose by 0.41% or 26.22 points to close at 6,394.77, while the broader all shares index went up by 0.41% or 14.76 points to end at 3,542.05.
鈥淭he thinly-traded Philippine market snapped a three-day losing skid as investors positioned ahead of tomorrow鈥檚 Monetary Board decision, at which the BSP is expected to deliver another 25-bp (basis point) rate cut, driven by lackluster fourth-quarter 2025 economic growth and anchored by the cushioning effect of the depreciating dollar,鈥 AP Securities, Inc. said in a market note.
鈥淭he PSEi ended higher as bargain hunters stepped in following three consecutive days of decline. Investors appeared to position themselves ahead of the BSP policy rate decision tomorrow,鈥 Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message. 鈥淭he rebound was driven by selective buying in key index names amid cautious optimism over the central bank鈥檚 next move.鈥
All 16 analysts in a 大象传媒 poll expect the Monetary Board to cut benchmark borrowing costs by 25 bps for a sixth consecutive meeting at Thursday鈥檚 review to bring the policy rate to 4.25%.
The BSP has lowered benchmark borrowing costs by 200 bps since its easing cycle began in August 2024.
鈥淭he positive cues from Wall Street and the strengthening of the peso also helped in the climb,鈥 Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco added in a Viber message.
The peso jumped by 12.5 centavos to close at P57.861 versus the dollar on Wednesday, data from the Bankers Association of the Philippines showed. This was the currency鈥檚 best close since September last year.
Most sectoral indices closed in the green on Wednesday. Services rose by 1.64% or 43.60 points to 2,691.96; property increased by 0.91% or 19.87 points to 2,191.28; mining and oil went up by 0.35% or 63.98 points to 17,918.75; financials climbed by 0.17% or 3.64 points to 2,141.23; and holding firms advanced by 0.07% or 3.54 points to 5,055.15.
Meanwhile, industrials fell by 0.71% or 65.32 points to 9,023.44.
鈥淒igiPlus Interactive Corp. was the day鈥檚 index leader, climbing 4.8% to P14.42. Semirara Mining and Power Corp. remained as the main index laggard, plunging 13.6% to P22.55,鈥 Mr. Tantiangco said.
Advancers outnumbered decliners, 101 to 93, while 63 names closed unchanged.
Value turnover dropped to P5.19 billion on Wednesday with 943.82 million shares traded from the P5.28 billion with 1.04 billion issues that changed hands on Monday.
Net foreign buying was at P467.67 million, a turnaround from the P90.80 million in net selling in the previous session. 鈥 Alexandria Grace C. Magno
