Philippine stocks rebounded Wednesday, fueled by bargain hunting after a three-day downturn and anticipation surrounding a key central bank decision.
The main stock index climbed 0.41%, closing at 6,394.77, while the broader market also saw gains, rising by the same percentage to 3,542.05. Investors strategically positioned themselves ahead of Thursday’s Monetary Board meeting, where a rate cut was widely predicted.
Analysts pointed to a confluence of factors driving the positive shift. The expectation of a 25-basis-point reduction in interest rates, spurred by slower economic growth forecasts and a weakening dollar, encouraged buying activity.
This anticipated rate cut would mark the sixth consecutive meeting where the central bank has lowered borrowing costs, bringing the total reduction since August to 200 basis points. The market reacted favorably to the prospect of increased economic stimulus.
Adding to the optimistic sentiment, the Philippine peso experienced a significant surge, strengthening to P57.861 against the dollar – its strongest showing since September. This positive currency movement further bolstered investor confidence.
Most sectors participated in the rally, with services leading the charge, jumping 1.64%. Property, mining and oil, financials, and holding firms also posted gains, indicating broad-based market improvement.
However, the industrials sector experienced a slight dip, falling by 0.71%. Despite this, the overall market trend remained firmly upward.
DigiPlus Interactive Corp. emerged as the day’s top performer, surging 4.8%, while Semirara Mining and Power Corp. lagged behind, experiencing a substantial 13.6% decline. These contrasting performances highlighted the selective nature of the buying.
More stocks advanced than declined, with 101 gainers compared to 93 decliners, and 63 stocks remaining unchanged. Trading volume decreased slightly to P5.19 billion, with 943.82 million shares traded.
Notably, foreign investors shifted from net sellers to net buyers, injecting P467.67 million into the market – a significant turnaround from the previous session’s net selling position. This influx of foreign capital signaled renewed interest in Philippine equities.
