By Komfie Manalo
The Philippine Stock Exchange index(PSEi) gained 27.23 points to 6,556.66 on Tuesday's trading, buoyed by dovish comments from the Bangko Sentral ng Pilipinas (BSP) on possible rate cuts.
The broader All Shares also rose by 13.82 points to 3,538.24 at the trading day's close.
"The local market rose by 27.23 points (0.42%) to 6,556.66 as rate cut hopes were strengthened due to the dovish comments from Bangko Sentral ng Pilipinas Governor Eli M. Remolona Jr.," Philstocks Financial Inc. research and engagement officer Mikhail Plopenio said.
"The BSP Governor stated that the central bank cannot wait too long before cutting interest rates as this poses downside risks to the economy's output. He also said that a rate cut by the third and fourth quarters is likely," he said.
Plopenio added the rate cut narrative to boost investors' confidence, as many have anticipated it since the start of the year.
Sectors were mixed with conglomerates, which had the biggest gain, climbing by 0.90%.
Banks, however, lost the most, dropping 0.77%. Gainers edged losers 97 to 90.
The Philippine peso, meanwhile, closed at 58.44 to a dollar from the previous day's 58.50.
It opened the day at 58.54 and traded between 58.43 and 58.56.
The weighted average for the day was 58.495.
The total trade volume went up to $1.1 billion from $1.07 billion on Monday.
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