PSEi rebounds 2.08%, BSP rate cut expected

The Philippine Stock Exchange index (PSEi) rebounded by 2.08% on Wednesday, driven by bargain hunting and expectations of a Bangko Sentral ng Pilipinas (BSP) rate cut scheduled for Thursday.

Analysts expect the BSP to reduce its policy rate by 25 basis points to 5%, marking the third consecutive cut since April.

The market saw increased buying activity as investors viewed previous day's prices as a bargain, with all sectoral indices except holding firms closing in positive territory.

BSP Governor Eli M. Remolona indicated that another reduction is possible for the remainder of the year given inflation expectations within the 2-4% target range.

Value turnover decreased to P8.65 billion on Wednesday, reflecting a shift towards more selective buying amid cautious optimism.