Philippine stocks hit 6,975.63 on rate cut hopes

Philippine stocks continued their upward trend for the fourth consecutive day on Wednesday, climbing above the 6,900 level amid expectations of a potential 100 basis-point rate cut by the Bangko Sentral ng Pilipinas (BSP) next year.

The benchmark Philippine Stock Exchange index (PSEi) rose 2.53%, or 172.44 points, to 6,975.63, while the broader all-share index gained 0.92% or 35.23 points to 3,847.41.

BSP Governor Eli M. Remolona Jr. indicated that further rate cuts are possible but noted that rates could either be cut or remain steady at their December 19 meeting.

Foreign investors turned net buyers, contributing positively to the market's performance with net foreign buying reaching P82.21 million, a significant turnaround from Tuesday’s outflows of P1.15 billion.

Sectoral indices across the board showed gains, with holding firms and financials leading the way, increasing by 3.25% and 2.95%, respectively.