The benchmark Philippine Stock Exchange Index gained 0.7 percent to close at 7,252.32, its strongest finish since March 2022.
The PSEi reached a high of 7,338.66 as news broke that the BSP reduced the reserve requirement ratio by 250 basis points.
This move will inject P375 billion in additional liquidity to support loan growth, providing a boost to the economy.
Recently, the influential US Federal Reserve also cut their key interest rate by 50 basis points.
Analyst view
“Banks are among the day’s winners after the BSP cut reserve requirements by 250 basis points,” Alfred Benjamin R. Garcia, research head at AP Securities Inc., said on Friday.
“The reserve requirement ratio cut could help boost loan volume growth for the banks and buffer their earnings against the upcoming decline in net interest margins as interest rates start to come down,” he added.
Garcia said momentum remains on the bulls' side.
"Market is going strong despite trading at overbought levels, and it just broke its short-term trend resistance," he said.
Foreign buying
Data from the stock exchange showed net foreign buying at almost P1.3 billion, while total value turnover reached nearly P17 billion, which includes a P2.7 billion block sale of AREIT Inc. shares by Ayala Land.
The financial subsector led gainers on Friday as it rose 2.25 percent. Industrial stocks gained 1.13 percent, followed by services (+0.92 percent), mining and oil (+0.91 percent), and holding firms (+0.66 percent).
Property stocks slumped 0.70 percent.
Major banks such as Bank of the Philippine Islands and Metropolitan Bank & Trust rose 3.35 percent and 2.92 percent, respectively. BDO Unibank, the country’s biggest lender, slipped 0.25 percent.
San Miguel Corp. was the top-traded stock as it shed 5.6 percent on Friday.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
