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THE BELLWETHER INDEX climbed for a third straight day on Tuesday to end above the 6,900 mark on expectations of continued monetary policy easing by the Bangko Sentral ng Pilipinas (BSP).

The Philippine Stock Exchange index (PSEi) rose by 0.79% or 54.89 points to finish at 6,944.76 on Tuesday, while the broader all shares index climbed by 0.61% or 22.64 points to end at 3,729.09.

This was the PSEi’s highest close in over four months or since it ended at 6,960.43 on April 2.

The index also breached the 7,000 level intraday, logging a high of 7,005.27 during the session.

“The local market climbed further this Tuesday… Expectations that the BSP will continue with its monetary policy easing moving forward, and positive cues from Wall Street continued to lift sentiment,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“Philippine shares broke into the 6,900 level and now is just a stone’s throw away from the 7,000 level, with investors continuing to buy into strong earnings and the recent 25-basis-point (bp) cut…,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The BSP on Thursday cut benchmark interest rates for the first time in almost four years amid an improving inflation and economic outlook, with its governor signaling at least one more reduction before the end of the year.

The Monetary Board reduced its policy rate by 25 bps to 6.25%, as expected by nine out of 16 analysts surveyed in a BusinessWorld poll.

BSP Governor Eli M. Remolona, Jr. said at a briefing that they could cut rates by another 25 bps within the year. The Monetary Board’s remaining policy-setting meetings this year are scheduled for Oct. 17 and Dec. 19.

Analysts expect the BSP’s easing cycle to continue until next year amid stabilizing inflation, with at least 100 bps in cuts seen in 2025.

“Investors also cheered the balance of payment (BoP) surplus posted by the Philippines in July and the strengthening of the local currency,” Mr. Tantiangco added.

The country’s BoP position swung to a $62-million surplus in July from a $53-million deficit in the same period last year, BSP data showed.

Meanwhile, the peso closed at an over four-month high of P56.55 per dollar on Tuesday, up by nine centavos from Monday’s finish.

Sectoral indices were split. Financials rose by 2.54% or 51.84 points to 2,091.92; services increased by 2.13% or 46.57 points to 2,227.19; and holding firms went up by 0.22% or 13.12 points to 5,853.17. Meanwhile, industrials fell by 0.83% or 77.13 points to 9,194.85; property dropped by 0.83% or 23.39 points to 2,765.09; and mining and oil went down by 0.25% or 21.41 points to 8,236.19.

Value turnover rose to P8.09 billion on Tuesday with 673.38 million issues changing hands from the P7.64 billion with 625.66 million shares traded on Monday.

Decliners outnumbered advancers, 120 versus 89, while 51 names closed unchanged.

Net foreign buying surged to P2.06 billion on Tuesday from P1.41 billion on Monday. — RMDO

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