The Philippine Stock Exchange index (PSEi) extended its winning streak on Wednesday, closing at 6,210.66, up by 1.01 percent, as rate cut hopes buoyed sentiment.

Investors welcomed remarks from Finance Secretary and Monetary Board member Ralph Recto, who said the Bangko Sentral ng Pilipinas (BSP) may still cut policy rates this year depending on the US Federal Reserve’s actions and the country’s inflation trajectory.

A decline in local bond yields and the peso’s continued strength further supported the rally. The local currency ended at P56.89 against the US dollar, slightly firmer than Tuesday’s close of P56.91, according to data from the Bankers Association of the Philippines.

Market activity was brisk, with net value turnover hitting P6.54 billion, above the year-to-date average of P5.96 billion. Foreign investors were net buyers, recording P693.91 million in inflows.

All sectoral indices advanced, led by services which gained 1.90 percent. Market breadth was positive, with 104 advancers edging out 83 decliners.