Local shares surge on rate cuts, peso depreciates

MANILA – The local bourse surged on the last day of trading this week as investors took positive cues from the monetary policy easing, while the peso depreciated along with other major currencies.

On Friday, the Philippine Stock Exchange index (PSEi) increased by 2.31 percent, or 154.46 points, to 6,847.37.

Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said the PSEi performance is “new highs in nearly 4.5 months or since April 3, 2024” and is “sharply higher/better from the immediate low of 6,397.10 posted on August 5, 2024.”

“(This is) a day after the 0.25 local policy rate cut that came as a pleasant surprise, despite some mixed/cautious signals a few days ago,” Ricafort said.

All Shares also rose 1.74 percent, or 63.27 points, to 3,691.42.

All counters closed with gains led by Services, which shares rising by 3.12 percent, followed by Financials (+2.15 percent), Property (+1.91 percent), Industrial (+1.86 percent), Holding Firms (+1.52 percent), and Mining and Oil (+0.17 percent).

Winners led losers at 134 to 68, with 50 counters left unchanged.

Meanwhile, the peso closed the week shedding 0.35 to 57.25 to the US dollar from Thursday’s finish of 56.90.

It started the day weak at 57.12 from the previous day’s opening of 56.97 against the dollar.

The currency pair traded between a low of 57.12 to a high of 57.28, bringing the average level for the day at 57.20 to the greenback.

Ricafort said the peso tracked the corrections of major global currencies.

“For Monday, the peso exchange rate could range at the 57.15 to 57.35 range,” he said.

Total volume of trade increased to USD1.44 billion Friday from USD1.33 billion in the previous trading. (PNA)

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