简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:PSEi climbs back over 6,500, boosted by rate cut expectations and the IMF's optimistic growth forecast, while the peso sees a minor decline.
Manila, Philippines - The Philippine stock market experienced a notable resurgence on Thursday, as the benchmark Philippine Stock Exchange index (PSEi) climbed by 73.15 points, reaching 6,523.19, an increase of 1.13 percent. Investor euphoria, fueled by anticipated monetary easing and favorable economic projections from the International Monetary Fund (IMF), drove this rally.
Conversely, the peso witnessed a slight depreciation, closing at P57.19 against the dollar, a minor drop from the previous day. Despite the peso's modest decline, trading activity suggested a tempered reaction to the currency's recent challenges against a robust dollar.
Michael Ricafort, Chief Economist at Rizal Commercial Banking Corp., pointed out the continued impact of a strong dollar, which has consistently pressured the peso. However, broader market sentiment was uplifted by prospects of policy easing. Bangko Sentral ng Pilipinas Governor Eli M. Remolona Jr.'s hints at possible rate cuts starting in the fourth quarter have sparked a wave of positive expectations among investors.
Mikhail Plopenio from Philstocks Financial Inc. noted that sustained bargain hunting contributed to the PSEi's gain, suggesting a strategic approach by investors to take advantage of undervalued stocks, supporting this upbeat outlook.
A positive impact on trader confidence came from the IMF's upbeat economic outlook, which added to the positive sentiment. Luis Limlingan, the managing director of Regina Capital Development Corp., emphasized how the market received this revised forecast favorably, indicating a strong response to international economic assessments.
In terms of market activity, the net value turnover stood at P5.9 billion, significantly higher than the year-to-date average, pointing to robust participation from investors. However, foreign investors registered a net outflow of P619.21 million, continuing a trend of cautious international participation amidst local market gains.
The services sector, which increased by 2.61 percent, led the way in terms of significant gains in the sector's performance. The only exception was the mining and oil sector, which experienced a decline of 1.62 percent.
The market dynamics showed more advancers than decliners, with 107 stocks advancing compared to 76 which declined, while 43 remained unchanged. This overall positive performance underscores growing confidence in the Philippine market's resilience and potential for growth, despite the mixed performance in the currency market.
As the fourth quarter approaches, all eyes will be on the BSP's next moves, which could potentially accelerate the momentum in the stock market, providing a much-needed boost to economic recovery efforts in the wake of global economic challenges.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
TradingView adds Irish stocks from Euronext Dublin, broadening access to 30 companies, including Ryanair and Kerry Group.
Tether hits record $7.7 billion in 2024 profits, $102.5 billion in U.S. Treasury holdings, and grows USD₮ circulation to nearly $120 billion in Q3 report.
Coinbase launches a new Engineering Hub in Singapore, partnering with EDB to foster blockchain innovation and nurture local talent in the APAC region.
Robinhood, Kraken, and Galaxy Digital launch USDG stablecoin with Paxos, aiming to expand global stablecoin use for secure cross-border payments.