The Philippine stock market surged to its highest level in more than two years Thursday after the US Federal Reserve reduced its interest rates for the first time in four years.
The bellwether Philippine Stock Exchange index jumped 46.26 points, or 0.65 percent, to close at 7,202.16, the highest since March 2022, while the broader all-shares index advanced by 23.72 points, or 0.62 percent, to reach 3,871.68. The Fed reduced its rates by 50 basis points to a range of 4.75 percent to 5 percent. It also plotted two more 25-basis-point-rate cut in the succeeding policy meetings.
Analysts said the aggressive US Fed rate cut would boost expectations the Bangko Sentral ng Pilipinas would also implement another round of rate cuts later this year. Rizal Commercial Banking Corp. chief economist Michael Ricafort said the market was also boosted by continued strengthening of the peso against the dollar.Five of the six stock market sectoral indices ended higher. Mining and oil jumped 2.43 percent, while financials rose 1.95 percent. Property climbed 0.93 percent, while services and holding firms improved by 0.19 percent and 0.04 percent, respectively. Industrial declined by 0.12 percent.