Bargain hunting lifts PSEi before rate decision

Stocks closed higher on Wednesday as investors bought cheap stocks after the market’s three-day slide and before the Bangko Sentral ng Pilipinas’ (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.

“The thinly-traded Philippine market snapped a three-day losing skid as investors positioned ahead of tomorrow’s 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,” AP Securities, Inc. said in a market note.

“The 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,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message. “The rebound was driven by selective buying in key index names amid cautious optimism over the central bank’s next move.”

All 16 analysts in a BusinessWorld poll expect the Monetary Board to cut benchmark borrowing costs by 25 bps for a sixth consecutive meeting at Thursday’s 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.

“The positive cues from Wall Street and the strengthening of the peso also helped in the climb,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco added in a Viber message.

The peso jumped by 12.5 centavos to close at PHP 57.861 versus the dollar on Wednesday, data from the Bankers Association of the Philippines showed. This was the currency’s 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.

“DigiPlus Interactive Corp. was the day’s index leader, climbing 4.8% to PHP 14.42. Semirara Mining and Power Corp. remained as the main index laggard, plunging 13.6% to PHP 22.55,” Mr. Tantiangco said.

Advancers outnumbered decliners, 101 to 93, while 63 names closed unchanged.

Value turnover dropped to PHP 5.19 billion on Wednesday with 943.82 million shares traded from the PHP 5.28 billion with 1.04 billion issues that changed hands on Monday.

Net foreign buying was at PHP 467.67 million, a turnaround from the PHP 90.80 million in net selling in the previous session. — Alexandria Grace C. Magno