PSEi jumps to seven-month high on strong peso

The main index rose to a seven-month high on Wednesday, even soaring above the 6,500 line during the session, supported by a strong peso and as players looked ahead to the Bangko Sentral ng Pilipinas’ (BSP) policy meeting next week, where a rate cut is widely expected.

The Philippine Stock Exchange index (PSEi) went up by 0.37% or 24.22 points to close at 6,498.82, while the broader all shares index climbed by 0.37% or 13.43 points to end at 3,606.53.

This was the benchmark’s best finish in almost seven months or since it closed at 6,525.04 on July 14, 2025, which was also the last time the PSEi ended above the 6,500 line.

“The local market closed higher, backed by the appreciation of the local currency,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

On Wednesday, the peso jumped by 24 centavos to close at a near four-month high of PHP 58.29 versus the greenback, data from the Bankers Association of the Philippines showed.

“The market was treading above the coveted 6,500 level before sliding down in the last minute of trading as bargain hunting activities prevailed, positioning ahead of the Monetary Board meeting next week,” AP Securities, Inc. said in a market note.

The PSEi opened Wednesday’s trading session at 6,492.33, rising from Tuesday’s close of 6,474.60. It hit an intraday high of 6,543.35 and a low of 6,474.04.

The BSP’s policy-setting Monetary Board will hold its first review for the year on Feb. 19, where analysts expect a sixth straight rate cut amid weak growth and manageable inflation.

BSP Governor Eli M. Remolona, Jr. earlier said a cut is possible at this month’s meeting if they see the need to support domestic demand, especially after economic growth slumped to a five-year low in 2025.

However, on Wednesday, he said inflation returning within their target range last month and expectations of economic recovery amid the return of confidence may have narrowed their easing space.

The Monetary Board has lowered benchmark borrowing costs by a total of 200 basis points since its rate cut cycle began in August 2024.

Majority of sectoral indices closed in the green on Wednesday. Mining and oil rose by 1.54% or 276.79 points to 18,168.51; property increased by 1.21% or 26.96 points to 2,241.36; financials went up by 0.83% or 17.95 points to 2,176.62; and industrials climbed by 0.8% or 73.65 points to 9,199.67.

Meanwhile, holding firms fell by 0.2% or 10.58 points to 5,172.72, and services went down by 0.12% or 3.47 points to 2,685.70.

Advancers outnumbered decliners, 106 to 89, while 69 names closed unchanged.

Value turnover jumped to PHP 9.17 billion on Wednesday with 2.95 billion shares from the PHP 6.86 billion with 754.25 million issues that changed hands on Tuesday.

Net foreign buying decreased to PHP 834.62 million from PHP 1.01 billion in the previous session. — A.G.C. Magno