The local stock market on Tuesday rose by 27.23 points or 0.42 percent, to close at 6,556.66 as the Bangko Sentral ng Pilipinas maintained a dovish position on the rate cut.

Philstocks Financial Inc. research and engagement officer, Mikhail Plopenia referred to BSP Governor Eli Remolona saying that the central bank “cannot wait too long before cutting interest rates as this poses downside risks to the economy’s output.”

He added that the BSP chief anticipates a likely rate cut by third or fourth quarter this year.

Investors confidence boosted

“The rate cut narrative seems to boost investors’ confidence, as many are anticipating it since the start of the year,” Plopenia said in a Viber message.

The holding firm sector gained the most, increasing by 0.90 percent, while banks were at the bottom, losing by 0.77 percent.

“Among the index members, Century Pacific Food Inc. [PSE: CNPF] was at the top, rising 5.38 percent to P34.25 while BDO Unibank, Inc. [PSE: BDO] lost the most, dropping 2.83 percent to P140.90,” Plopenio said.

The peso closed at P58.44 against the dollar.

Rizal Commercial Banking Corporation chief economist Michael Ricafort, meanwhile, said the peso’s recent stabilization at the 58.50 to 58.80 exchange levels is a good signal for the financial markets and the overall economy, again lower or better than the immediate high of 58.92 posted on 27 June or more than a week ago.

He added that global crude oil prices again corrected lower to new one-week lows on ceasefire talks recently between Hamas and Israel.