Philippine stocks jumped Friday to close above the 6,400 mark on interest rate cut hopes and the positive assessment given by the International Monetary Fund on the economy
The Philippine Stock Exchange index (PSEi), the 30-company benchmark index, surged 107.73 points, or 1.71 percent, to close at 6,413.10 Friday as investors welcomed a more dovish monetary stance by the Bangko Sentral ng Pilipinas (BSP).
The all-shares index also rose 38.61 points, or 1.04 percent, to settle at 3,746.79.
BSP Governor Eli Remolona Jr. signaled two more key rate cuts this year amid cooling inflation and a more stable external environment.
“So far the hard data says we have plenty of room to cut especially since inflation is low,” Remolona said in a briefing.
The peso also climbed to 55.25 against the US dollar Friday from 55.58 Thursday.
Headline inflation fell to 1.4 percent in April this year, the lowest recorded since November 2019.
Remolona said non-monetary measures imposed by the government also helped lower inflation. “They seem to help with inflation,” he said.
Remolona also hinted reserve requirement ratio cut in 2026.
The Philippine economy remains resilient despite external challenges and is expected to grow 5.5 percent in 2025, an International Monetary Fund (IMF) mission said, following the conclusion of its visit to the country.
Headline inflation fell to 1.4 percent in April 2025, largely driven by the earlier tightening cycle and lower food prices supported by the reduction in rice tariffs last year and other administrative measures by the government, while core inflation declined to 2.2 percent.
With inflation expectations well-anchored, inflation is projected to stay near the lower end of the target band at 2.2 percent in 2025, and risks are broadly balanced, the IMF mission said.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said investors also welcomed President Ferdinand Marcos Jr.’s decision to maintain his economic team, which provides greater predictability and continuity in terms of policies and priorities.
All sectoral indices ended higher except mining and oil, which declined 0.65 percent. Financials gained 2.38 percent, while property advanced by 2.32 percent and holding firms by 1.81 percent.
Value turnover reached P5.65 billion. Foreign investors turned net buyers, with inflows reached P126.8 million.
SM Prime Holdings Inc. jumped 3.52 percent to P23.50. Globe Telecom Inc. declined 2.89 percent to P1,748. With Darwin G. Amojelar
