Philippine shares break into bull market territory with over 20-pct gain

ABS-CBN News

Posted at Jul 16 2019 11:50 AM | Updated as of Jul 16 2019 12:18 PM

Watch more in iWant or TFC.tv

MANILA -- Philippine stocks entered bull market territory, buoyed by expectations of lower interest rates due to cooling inflation and an upbeat outlook for corporate earnings, analysts said Tuesday.

The Philippine Stock Exchange Index gained 2.7 percent on Monday, and was 22 percent higher from its November low, according to Bloomberg data.

“That’s a clear breakout complemented with value turnover and net foreign buying," First Metro Securities equity research associate Royce Aguilar told ANC.

Bangko Sentral ng Pilipinas (BSP) Gov. Benjamin Diokno's dovish statements on potential cuts in key interest rate and reserve requirement for banks are also "very positive," Aguilar said.

The Monetary Board reduced borrowing rate by 25-basis points in May. It also announced a 200-basis point cut in reserve requirement for banks, to be implemented in tranches.

Philippine shares opened at 8,354.84 level from Monday's 8,365.29.