Local shares finished the trading week in the 7,100 area, buoyed by the Bangko Sentral ng Pilipinas’ (BSP) surprise move to slash its interest rates to a record low the day before.
The benchmark Philippine Stock Exchange index (PSEi) rose by 2.46 percent or 172.17 points to end at its intraday high of 7,169.79 while the wider All Shares jumped by 2.23 percent or 91.85 points to close at 4,219.39.
The last time the main index breached the 7,100 level was on February 24, when it finished at 7,187.44.
Regina Capital Development Corp. Managing Director Luis Limlingan reported that investors bought stocks after the central bank further reduced its key interest rates to their lowest level.
On Thursday the BSP trimmed overnight borrowing, lending and deposit rates by 25 basis points (bps) to 2 percent, 1.5 percent and 2.5 percent, respectively, to further support the economy as it gradually bounces back from the impact of the coronavirus pandemic.
Limlingan also attributed the bourse’s advance to hopes that US lawmakers could still pass a coronavirus aid relief package to limit the damage the pandemic inflicted on the world’s largest economy.
AAA Equities Head of Research Christopher Mangun also cited the interest rate cut, which he said strengthened positive sentiment and led shares to end with a substantial gain for the third straight week.
“It gave investors confidence that the government is willing to do whatever it can to spur economic growth in the near future,” Mangun explained.
All local sectors rallied, with mining and oil and holding firms led at 2.88 percent and 2.87 percent, respectively.
Total volume turnover was at 32.04 billion shares, valued at P10.94 billion.
Winners outpaced losers, 159 to 66, while 45 securities were unchanged.