The Philippine Stock Exchange index (PSEi) entered the 7,500-point territory on October 7 (Monday) and even reached an intraday high of 7,604.41 points.
Overall, the PSEi gained 86.76 points, or 1.16 percent, to close at 7,554.68 to leave behind the 7,400-point territory and setting a new record high for the year.
This is the highest close of the PSEi since the 7,587.63 points on January 27, 2020 or pre-pandemic.
Philstocks Financial Inc. research manager Japhet Tantiangco said market sentiment was boosted by the lower 1.9% inflation rate in September, a development that almost makes certain another policy rate reduction by the Bangko Sentral ng Pilipinas (BSP).
“Investors continued to cheer the significant slowdown of the Philippines’ inflation last September as it strengthens the case for further monetary policy easing by the Bangko Sentral ng Pilipinas,” he added.
Tantiangco said that investors were also optimistics that the US Federal Reserve will deliver another policy rate reduction in its next meetings this year.
Also boosting market sentiment on October 7 was the better jobs data in the US, according to Regina Capital Development Corp. Managing Director Luis Limlingan.
“Philippine shares continued the momentum both from better than expected local CPI (consumer price index) as well as the US employment,” Limlingan said.
About 254,000 jobs were added in the US in September, which is more than in August and beating expectations.
In the next weeks given the current momentum of the PSEi, it is highly possible for the stock index to breach the 7,600-point level as the next official meeting BSP’s Monetary Board nears. The MB will meet on October 17.
(Photo from Pixabay)
