PHL shares rebound on 'surprise' BSP rate cut

Share prices at the Philippine Stock Exchange ended the trading week on a strong note Friday as investors cheered the recent unexpected interest rate cut by the Bangko Sentral ng Pilipinas (BSP).

The bellwether PSEi gained 73.58 points or 1.20% to 6,191.84 at the closing bell. The broader All Shares increased by 30.17 points or 0.84% to 3,631.15.

“The local bourse moved between gains and losses for the day before ending in green following BSP’s 50 basis points policy rate cut.

On Thursday, the BSP’s policy-setting Monetary Board slashed key interest rates by 50 basis points, citing stable inflation outlook moving forward.

BSP Governor Benjamin Diokno said effective Friday, June 26, rates will be at 2.25% for the overnight reverse repurchase (RRP) facility, the overnight deposit facility at 1.75%, and the overnight lending at 3.25%.

The move cuts policy rates to their lowest level in history.

More than 1.071 billion shares valued at P5.2917 billion, changed hands. Advancers led decliners, 99 to 91, and 54 issues were unchanged. -NB, GMA News