The lobby of the Philippine Stock Exchange in Taguig City, Sept. 30, 2020. — REUTERS

PHILIPPINE STOCKS rose on Wednesday on expectations of a rate cut from the Bangko Sentral ng Pilipinas (BSP) next month and as players picked up bargains.

The benchmark Philippine Stock Exchange index (PSEi) increased by 0.45% or 28.44 points to end at 6,313.12, while the broader all shares index climbed by 0.70% or 26.26 points to close at 3,749.35.

“The PSEi resumed gains after the latest dovish signals from local monetary officials…,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

There is a “high probability” that the BSP will deliver a rate cut at its April 10 meeting, Finance Secretary Ralph G. Recto, who is also a Monetary Board member, told Bloomberg TV on Wednesday.

Mr. Recto added that the BSP could reduce benchmark borrowing costs by 50-75 basis points (bp) this year, which could boost economic growth and investments.

BSP Governor Eli M. Remolona, Jr. last week also said that a rate cut is “on the table” at the Monetary Board’s review next month.

Mr. Remolona said the Philippine central bank’s rate-cut cycle remains underway, signaling up to 50 bps of reductions for the year.

The BSP unexpectedly paused its easing cycle last month, keeping its policy rate at 5.75% after cutting rates by 25 bps for three straight meetings last year.

“The local market bounced back as investors hunted for bargains supported by appreciation for corporate fundamentals,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

He added that foreign buying supported the market’s climb. Net foreign buying went up to P392.22 million on Wednesday from P337.16 million on Tuesday.

Majority of sectoral indices closed in the green on Wednesday. Financials climbed by 1.34% or 32.60 points to 2,451.02; industrials went up by 0.99% or 86.64 points to 8,789.29; property increased by 0.41% or 9.21 points to 2,240; and holding firms inched up by 0.01% or 0.54 point to 5,221.70.

Meanwhile, mining and oil slumped by 1.26% or 114.92 points to 9,001.98 and services declined by 0.80% or 16.76 points to 2,053.78.

“Globe Telecom, Inc. was the day’s index leader, jumping 4.76% to P2,200. Alliance Global Group, Inc. was the day’s main index laggard, falling 2.95% to P5.93,” Mr. Tantiangco said.

Value turnover dropped to P7.84 billion on Wednesday with 966.38 million shares traded from the P8.47 billion with 1.30 billion issues that changed hands on Tuesday.

Advancers bested decliners, 93 versus 88, while 63 names were unchanged.

Mr. Ricafort put the market’s support at 6,000 and minor resistance at 6,400-6,530. — Revin Mikhael D. Ochave