MANILA – With May inflation remaining within the government’s target range of 2 to 4 percent, the local stock market gained strength mid-week, while the peso continued its decline.
The benchmark Philippine Stock Exchange index (PSEi) closed higher, rising by 0.86 percent to reach 6,441.32 points.
The All Shares index also finished in positive territory, gaining 0.43 percent to close at 3,453.69.
However, the mining, oil, and industrial sectors saw declines, dropping by 0.57 percent and 0.05 percent, respectively.
The top performer of the day was the Holding Firms sector, which increased by 1.78 percent. Other indices that ended in the green included Property (+0.92 percent), Services (+0.41 percent), and Financials (+0.34 percent).
Mikhail Plopenio, research and engagement officer at Philstock Financials, Inc., noted that investors reacted positively to the latest inflation data, which showed a rate of 3.9 percent in May 2024. This was a slight increase from 3.8 percent in April but significantly lower than the 6.1 percent rate recorded in May 2023.
“The Bangko Sentral ng Pilipinas (BSP) statement regarding the potential for cutting policy rates ahead of the Federal Reserve has raised hopes for rate cuts, contributing to the positive sentiment,” Plopenio added.
Luis Limlingan, head of sales at Regina Capital Development Corp., mentioned that the local bourse mirrored movements in US equities.
On Wednesday, there were more winners than losers, with 103 stocks advancing and 82 declining, while 46 remained unchanged.
Meanwhile, the Philippine peso continued to weaken, closing at 58.78 to the US dollar, down from Tuesday’s close of 58.71.
Peso weakens
The peso started the day weaker at 58.80, compared to the previous day’s opening of 58.62 to the dollar.
The currency pair traded within a range of 58.65 to 58.80, with the weighted average for the day settling at 58.73 to the greenback.
Trade volume remained flat on Wednesday at USD1.32 billion, the same level as the previous day.
(El Amigo/With reports from PNA)
