Phl stock index goes up buoyed by growth optimism

The local bourse on Wednesday inched up 30.62 points, or 0.31 percent, to close at 6,687.71 level.

Sectoral indices were mixed, with Mining and Oil gaining the most by 4.27 percent, followed by Holding Firms, up by 1.14 percent, and Industrial by 0.43 percent.

Property and Banks lost the most, dropping by 0.34 percent and 0.31 percent, respectively.

The Service index was also in the red down by 0.22 percent.

Philstocks Financial Inc. research analyst Claire T. Alviar Mitchell linked the PSEi gains to positive cues from Wall Street overnight, amid optimism toward the second quarter corporate results and rate-cut hopes soon by the Federal Reserve.

“Sentiment was further lifted as some institutions maintained their economic growth projections for the Philippines at around 6 percent, despite a slight downward revision by the ASEAN+3 Macroeconomic Research Office,” she said in a Viber message.

Meanwhile, Rizal Commercial Banking Corporation chief economist Michael Ricafort said the Wednesday gains are among the 3.5-month highs of the index since 30 April 2024.

He said a crucial factor that bolstered the recent gains in the local stock market is the improving trend in local interest rate yields, which he said supported market sentiment as this could reduce the borrowing costs of listed companies.

The peso closed at P58.29 as against the dollar.