THE peso and stock market rebounded on Thursday with sentiment said to have risen following a jumbo rate cut by the US Federal Reserve .The currency strengthened by 11 centavos to P55.61 against the dollar, while the benchmark Philippine Stock Exchange index added 46.26 points, or 0.65 percent, to close at a two-and-a-half-year high of 7,202.16.The broader All Shares also rose, by 0.62 percent, or 23.72 points, to 3,871.68.The peso opened trading at P55.88:$1 and ranged from P55.56 to P55.92.
senior research analyst Japhet Tantiangco, meanwhile, said 'investors positively accepted the Federal Reserve's 50 basis points policy rate cut, which is expected to give a big boost to the US' economy.''In addition, the market cheered the Bangko Sentral ng Pilipinas' plan to cut banks' reserve requirement ratios substantially this year,' he added.Tantiangco noted that the trading was strong with net value turnover at P7.