Philippine shares rally on surprise Fed rate cut, slower inflation

Philippine shares rallied on Thursday, boosted by the emergency rate cut of the US Federal Reserve and the lower inflation print last month.

The bellwether PSEi gained 17.51 points or 0.26% to 6,884.77 at the closing bell. The broader All Shares increased by 5.81 points or 0.14% to 4,094.87.

“Philippine shares climbed today, warming finally to the Federal Reserve’s surprise interest rate cut and support from other central banks...,” Regina Capital head of sales Luis Limlingan said.

The Federal Reserve lowered by 50 basis points in an emergency move to ease the economic impact of the COVID-19 outbreak.

“In addition, shares also got a boost from strong economic data. Inflation numbers came in better than expected at 2.6% which was lower both year-on-year and mont-on-month,” Limlingan said.

Inflation slowed further in February as it clocked in at 2.6%, the Philippine Statistics Authority (PSA) reported Thursday. 

The latest figure compares with the 2.9% print in January, and 3.8% in February 2019.

Foreign funds bought P3.629 billion and sold P2.689 billion for a net buying position of P940.788 million.

More than 978.547 million shares valued at P6.021 billion, changed hands. Advancers led decliners, 97 to 76, and 57 issues were unchanged. — BM, GMA News