Rate cut brings bourse near 7,000 levels

The local stock market gauge on Tuesday rose by 54.89 points, or 0.80 percent, to close at 6,944.76.

Sectors were split, with Banking gaining the most by 2.54 percent, followed by Services up by 2.14 percent, and Holding Firms increasing by 0.22 percent.

Meanwhile, Properties was the biggest loser, down by 0.84 percent.

Investment upgrade

Regina Capital Development Corp. head of sales Luis Limlingan linked the bourse’s continued positive performance to investors buying into strong earnings following the Bangko Sentral ng Pilipinas' (BSP) rate cut of 25 basis points and the recent investment-grade upgrade of the country by the Japan Credit Rating Agency.

“US equities also went for another winning day as the market continued to recover from previous sell-offs,” he said in a Viber message.

BoP surplus

“Investors also cheered the balance of payment (BoP) surplus posted by the Philippines in July and the strengthening of the local currency,” Philstocks Financial Inc. senior research analyst Japhet Tantiangco said.

The net market value turnover reached P7.88 billion, higher than the year-to-date P4.95 billion average.

Decliners exceeded Advancers at 120 to 89. Meanwhile, fifty-one names remain unchanged.