Shares closed higher on Wednesday as investors bought cheap stocks after three days of market decline and ahead of the Bangko Sentral ng Pilipinas (BSP) policy meeting, where a rate cut is widely expected.
The benchmark Philippine Stock Exchange Index (PSEI) rose 0.41% or 26.22 points to close at 6,394.77, while the broader all-share index rose 0.41% or 14.76 points to close at 3,542.05.
AP Securities, Inc. “The thinly traded Philippine market halted its three-day losing streak as investors positioned themselves ahead of yesterday's Monetary Board decision on which BSP is expected to pursue a 25-bp (basis point) rate cut, driven by weak fourth-quarter 2025 economic growth and the softening impact of a depreciating dollar,” it said in a market note.
Louis A., head of sales for Regina Capital Development Corp. “After three consecutive days of decline, the PSEI closed higher as bargain hunters stepped in. Investors appeared to be positioning themselves ahead of the BSP policy rate decision tomorrow,” Limlingan also 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 analyzers in one businessworld The survey expects the Monetary Board to cut the benchmark borrowing costs by 25 bps in its sixth consecutive meeting at its review on Thursday, taking the policy rate to 4.25%.
The BSP has reduced the benchmark borrowing costs by 200 bps since the start of the easing cycle in August 2024.
Philstocks Financial, Inc. Research Manager Japhet Lewis O. “Positive signals from Wall Street and the strengthening of the peso also helped the rise,” Tantiangco said in a Viber message.
The peso rose 12.5 centavos to close at P57.861 against the dollar on Wednesday, data from the Bankers Association of the Philippines showed. This was the currency's best closing since September last year.
On Wednesday, most of the sector indices closed in the green. Services rose 1.64% or 43.60 points to 2,691.96; The asset rose 0.91% or 19.87 points to 2,191.28; Mining & Oil rose 0.35% or 63.98 points to 17,918.75; The Financials climbed 0.17% or 3.64 points to 2,141.23; And holding firms rose 0.07% or 3.54 points to 5,055.15.
Meanwhile, Industrials fell 0.71% or 65.32 points to 9,023.44.
“Digiplus Interactive Corp. was the day's index leader, rising 4.8% to P14.42. Semirara Mining and Power Corp. was the laggard in the main index, falling 13.6% to P22.55,” Mr. Tantiangco said.
Advancers outnumbered decliners, 101 to 93, while 63 names closed unchanged.
Value turnover fell to P5.19 billion on Wednesday, with 943.82 million shares traded from P5.28 billion, while 1.04 billion issues changed hands on Monday.
Net foreign purchases were P467.67 million, higher than net sales of P90.80 million in the previous session. — Alexandria Grace C. Magno