Philippine shares rise above 7,200 mark as Fed cuts rates

Philippine shares closed above the 7,200 mark on Thursday as investors welcomed the Federal Reserve's first rate cut in four years and the Bangko Sentral ng Pilipinas' plan to lower banks' reserve requirement ratios.

The benchmark Philippine Stock Exchange Index (PSEi) climbed by 0.65%, closing at 7,202.16 points, while the broader All Shares Index gained 0.62% to reach 3,871.68 points.

Mining and Oil led gains with a 2.43% increase, followed by Financials, up 1.95%, Property, up 0.93%, Services, up 0.19%, and Holding Firms, up 0.04%. The Industrial sector was the only one to decline, falling by 0.12%.

The peso also appreciated against the US dollar, trading at P55.61 per USD from P55.72 in the previous session, reflecting positive sentiment towards the local economy.

Total volume of trade surged to USD1.99 billion from USD1.23 billion in the previous day, indicating increased market activity and investor optimism.