The Philippine Stock Exchange Index (PSEi) rose 0.37%, or 23.12 points, closing at 6,247.11 on Tuesday. This marks the index's highest finish since June 15.
Investor confidence increased following the release of inflation data for June, which indicated a decrease to 6.4% from 6.8% in May.
Luis A. Limlingan, Head of Sales at Regina Capital Development Corp., commented that the inflation figures exceeded expectations, enhancing optimism for the economic outlook.
Key Drivers of Market Performance
The local market extended its rally, driven mainly by International Container Terminal Services, Inc.’s (ICTSI) rebound. Investors also cheered the decline in our country’s inflation rate from May’s 6.8% to June’s 6.4%.
Japhet Louis O. Tantiangco, Research Manager, Philstocks Financial, Inc.
Despite the positive trend, inflation remains above the Bangko Sentral ng Pilipinas' (BSP) target range of 2% to 4%. The average inflation rate for the first half of the year stands at 4.8%.
BSP Governor Eli M. Remolona, Jr. indicated that the economy could withstand another 25-basis-point increase in interest rates to manage inflation expectations.
Most sectoral indices faced declines on Tuesday, with holding firms falling by 1.27% and property by 1.07%. However, the services sector gained 2.76%.
Foreign investors contributed positively, with net buying rising to P770.42 million from P491.60 million in the previous session.