Philippine stocks gained ground on Thursday, driven by favorable US inflation data that alleviated concerns regarding potential rate hikes by the US Federal Reserve. The Philippine Stock Exchange index (PSEi) climbed 0.35%, closing at 6,325.15.
Market Reactions to US Economic Data
The local market extended its climb as concerns over the Federal Reserve’s policy outlook continue to ease. This comes as the US June producer price index (PPI) posted a decline of 0.3%.
Japhet Louis O. Tantiangco, Philstocks Financial, Inc.
- PSEi closed at 6,325.15
- All shares index rose to 3,413.71
- Value turnover hit P7.42 billion
Investors reacted positively to the US PPI data, which fell by 0.3% in June. This followed a report indicating soft consumer inflation, reducing the likelihood of an imminent rate hike from 43% to just 10%, as reported by Reuters.
Despite the positive trend, analysts caution that the decline in inflation may be short-lived due to rising oil prices amid geopolitical tensions.
Luis A. Limlingan, Head of Sales at Regina Capital Development Corp, noted that the local market remained buoyant as investors anticipated strong second-quarter earnings, with select blue-chip stocks attracting buying interest.
On Thursday, four of the six sectoral indices advanced, with mining and oil leading the way, gaining 2.9%. Financials and property sectors also saw increases.
PLDT, Inc. emerged as the top index gainer with a 3.86% rise to P1,238, while Semirara Mining and Power Corp. was the laggard, decreasing by 3.83% to P20.10.
Net foreign buying decreased to P195.39 million, down from P280.04 million the previous session. Investors continue to monitor global developments for further market insights.