THE MAIN INDEX soared to the 6,400 level on Monday to hit a near six-month high amid growing hopes for one more rate cut from the Bangko Sentral ng Pilipinas (BSP) next month.
The Philippine Stock Exchange index (PSEi) surged by 1.13% or 71.82 points to finish at 6,419.96, while the broader all shares index increased by 0.94% or 34.13 points to three,641.13.
This was the PSEi’s best finish in nearly six months or because it closed at 6,444.16 on July 24.
“Philippine equities have officially risen back to index levels seen prior to the flood control fiasco, driven by the dovish tone sung by the BSP chief, hinting at a high likelihood of a 25-basis-point (bp) cut this upcoming February meeting,” AP Securities, Inc. said in a market note.
Last week, BSP Governor Eli M. Remolona, Jr. said a cut stays on the table on the Monetary Board’s Feb. 19 meeting, at the same time as he noted that the policy rate is already “very close” to where they need it to be, signaling an imminent end to their easing cycle.
The Monetary Board has lowered benchmark borrowing costs by a complete of 200 bps since its rate cut cycle began in August 2024. In 2025 alone, it delivered a cumulative 125 bps in cuts for five straight meetings to bring the important thing rate to an over three-year low of 4.5%.
“The PSEi led to the green, supported by sustained buying momentum throughout the session. Market sentiment further improved following Nomura’s forecast that the BSP could possibly deliver 25-bp rate cuts in each February and April,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“Expectations of a more accommodative policy stance further encouraged risk-taking amongst investors,” he said.
Nomura Global Markets Research said in a Jan. 9 report that the BSP may ease its policy stance further this 12 months because the corruption scandal may proceed to dampen government spending and economic growth.
Nomura Chief ASEAN (Association of Southeast Asian Nations) Economist Euben Paracuelles and Macroeconomic Research Analyst Yiru Chen said the BSP could deliver one 25-bp cut each at its February and April meetings.
All sectoral indices closed higher on Monday. Mining and oil surged by 5% or 815.87 points to 17,116.43; financials increased by 2.13% or 45.62 points to 2,179.17; property went up by 1.87% or 43.28 points to 2,347.21; industrials climbed by 0.81% or 73.53 points to 9,139.77; holding firms jumped by 0.7% or 34.99 points to five,026.91; and services increased by 0.33% or 8.53 points to 2,563.17.
Advancers outnumbered decliners, 142 to 80, while 53 names closed unchanged.
Value turnover went as much as P6.64 billion on Monday with 1.02 billion shares traded from the P6.11 billion with 1.57 billion issues that modified hands on Friday.
Net foreign buying increased to P534.17 million from P320.68 million. — Alexandria Grace C. Magno