Philippine shares rebound before BSP policy meeting

Stocks rebounded on Wednesday on bargain hunting before the Bangko Sentral ng Pilipinas’ (BSP) widely expected rate cut on Thursday.

The bellwether Philippine Stock Exchange index (PSEi) jumped by 2.08% or 128.10 points to end at 6,273.34, while the broader all shares index went up by 1.26% or 46.52 points to close at 3,731.07.

“The local market bounced back this Wednesday fueled by bargain hunting. Hopes of a Bangko Sentral ng Pilipinas rate cut in their upcoming Monetary Board meeting this week also helped in the rebound,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“The market saw buyers take charge today after yesterday’s dip,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “Investors likely viewed yesterday’s prices as a bargain buying opportunity, pushing prices and the market higher together with investors positioning for the upcoming BSP meeting.”

All 20 analysts in a BusinessWorld poll expect the Monetary Board to reduce the policy rate by 25 basis points (bp) to 5% at its meeting on Thursday.

This would be the BSP’s third consecutive 25-bp cut since April. It has lowered benchmark interest rates by a total of 125 bps since it began its easing cycle in August 2024.

BSP Governor Eli M. Remolona, Jr. earlier said a cut is “quite likely” at this week’s meeting and another reduction is also on the table for the remainder of the year as inflation is likely to stay within the 2-4% annual target.

After Thursday’s review, the Monetary Board’s remaining meetings for this year are scheduled for Oct. 9 and Dec. 11.

Inflation sharply eased to a near six-year low of 0.9% in July from 1.4% in June, bringing the seven-month average to 1.7%, a tad higher than the central bank’s 1.6% forecast but below its 2-4% target.

Almost all sectoral indices closed in the green on Wednesday. Services surged by 3.96% or 85.37 points to 2,237.06; financials jumped by 3.52% or 72.41 points to 2,124.81; property increased by 2.71% or 66.15 points to 2,504.18; mining and oil climbed by 2.41% or 231.08 points to 9,819.82; and industrials rose by 0.32% or 29.84 points to 9,133.01.

Meanwhile, holding firms dropped by 0.51% or 26.76 points to 5,157.03.

“International Container Terminal Services, Inc. was the top index gainer, jumping 7.02% to PHP 485. Aboitiz Equity Ventures, Inc. was the main index laggard, falling 3.4% to PHP 29.80,” Mr. Tantiangco said.

Value turnover fell to PHP 8.65 billion on Wednesday with 890.43 million shares traded from PHP 14.32 billion with 1.55 billion shares exchanged on Tuesday.

Advancers bested decliners, 117 versus 100, while 39 names closed unchanged.

Net foreign selling decreased to PHP 41.42 million on Wednesday from PHP 2.04 billion on Tuesday. — Revin Mikhael D. Ochave