THE stock market rose for a third straight day on Friday with investors said to have been buoyed by the latest Bangko Sentral ng Pilipinas (BSP) rate cut, but the peso fell to a one-week low on Friday on higher oil prices and cautious comments from the central bank governor.
The Philippine Stock Exchange index (PSEi) added 57.97 points, or 0.90 percent, to close at 6,465.12 while the peso shed 15.4 centavos and ended the trading week at P58.15 against the dollar.
Investors were said to have focused on BSP Governor Eli Remolona Jr. saying that the policy outlook would depend on how quickly confidence returned to the economy.
“The BSP’s cut came with cautious guidance, reflecting a weaker-than-expected recovery, softer confidence indicators and delays in government spending,” said Radhika Rao, senior economist at DBS Bank.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso weakened following Thursday’s 25-basis point policy rate cut, along with less hawkish signals from the BSP.
Meanwhile, Philstocks Financial Inc. research manager Japhet Tantiangco said the PSEi advanced on the back of the BSP’s continued easing, although participation remained subdued.
Net value turnover was P5.37 billion, below the year-to-date average of P6.25 billion. Foreign investors were net buyers, posting net inflows of P351.89 million.
Ricafort said the PSEi had hit a fresh week high and on expectations of further easing by the BSP, especially if the US Federal Reserve cuts rates later this year.
He added that the peso’s relative strength, narrower balance of payments deficit and higher gross international reserves also supported investor sentiment.
All sectoral indices ended in positive territory, with financials leading the advance, up 1.68 percent. Advancers outnumbered decliners, 107 to 93.
Puregold Price Club, Inc. was the top index gainer, rising 3.85 percent to P40.50, while ACEN Corp. was the main laggard, declining 3.23 percent to P2.70.