Positive vibes push index up

The local bourse gained 41.14 points, or 0.62 percent, to close at 6,689.37 on the first trading day of the week.

Most sectors were in green, with the Properties gaining the most by 1.91 percent, followed by the Holding Firms, up by 1.74 percent, and Mining and Oil by 1.07 percent.

Services and banks were in the red territory, losing 1.07 percent and 0.08 percent, respectively.

Philstocks Financial Inc. Research Analyst Claire T. Alviar Mitchell attributed the PSEi gains on Monday to the positive spillover from the US markets’ performance last Friday.

Bigger cuts boost sentiment

“Moreover, report that the Bangko Sentral ng Pilipinas may cut interest rates larger than expected, boosted the sentiment,” she said in a Viber message.

Rizal Commercial Banking Corporation chief economist Michael Ricafort meanwhile said the gains are new 2.5-month highs following the continued growth in OFW cash remittances.

OFW remittances in May increased by 3.6 percent year-on-year, which is better compared to 2.8 percent last year, he said.

Ricafort added that the increase in the local markets was mainly driven by the recent streak of record highs in most US stock markets after mostly softer other US economic data recently that further increased the chances of Fed rate cuts in the coming months.

“Fed Fund Futures priced in about -0.63 or at least 2 Fed rate cuts in 2024; with at least 94 percent chance of a Fed rate cut by Sep. 2024; overshadowed some market volatility after the failed assassination attempt vs. Trump over the weekend that could bolster his chances of winning the US presidency later this year,” he said in a Viber message.

The peso closed at P58.48 from a dollar.