The local stock market index on Thursday ended in green, strengthening by 46.26 points, or 0.65 percent, to breach 7,200 levels, closing at 7,202.16.
Most sectors were up, with Miners leading the advancers at a 2.43 percent increase, followed by Banking and Properties gaining by 1.95 percent and 0.93 percent, respectively.
Industrial was the lone shredder down by 0.12 points.
Nickel Asia Corporation was the top index gainer, jumping by 6.34 percent to P3.69. Jollibee Foods Corporation, on the other hand, was the biggest loser, down by 2.21 percent to P257.00.
International Container Terminal Services Inc. was the most actively traded stock at P765,399,680, down by 0.30 percent; followed by Ayala Corporation at P757,461,315, up by 1.12 percent.
Regina Capital Development Corp. head of sales Luis Limlingan said the Federal Reserve’s first cute rate in four years boosted the sentiment as it lowered interest rates by 50 basis points to a range of 4.75 percent to 5.00 percent.
He added that gold prices eased after reaching an intraday all-time high, with spot gold dipping 0.40 percent to $2,560.29 per ounce.
“Oil prices also softened, with Brent crude slipping 0.07 percent to $73.65 per barrel, reacting to the larger-than-expected rate cut,” he added.
The net market value turnover closed at P8.16 billion, with 113 winners and 78 losers, while 62 names remain unchanged.
Meanwhile, the US dollar-peso exchange rate eased by -0.11 or -0.2 percent, and the Fed cut rates by -0.50. The exchange rate closed at P 55.61.
"10 of 19 Fed officials favored lowering Fed rates by at least an additional -0.50 over the Fed’s two remaining meetings in 2024," Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said.
The latest Fed dot plot: -0.50 more Fed rate cuts in 2024; -1.00 in 2024; -0.50 in 2026.
Meanwhile, Fed Fund Futures priced in about -0.69, or nearly -0.25 more Fed rate cuts in 2024, with about a 133 percent chance of a -0.25 Fed rate cut by November.
"The peso also stronger after the local stock market at new 2.5-year highs or since March 7, 2022, above 7,200 lately," he said in a Viber message.
He said the next support levels for the exchange rate will range between 55.00 and 55.30 levels.
Meanwhile, Ricafort said the Banko Sentral ng Pilipinas (BSP) is likely to keep the 0.75 to 1.00 interest rate differential, matching the -0.50 Fed rate cut on the next BSP rate-setting meeting in October.
"The narrow spread [is] also a manifestation to prioritize economic growth," the RCBC executive said.