Philippine stocks and the peso advanced Thursday as inflation rate eased to a seven-month low of 3.3 percent in August 2024.
The benchmark Philippine Stock Exchange index went up by 25.85 points, or 0.38 percent, to close at 6,907.97, while the broader all-shares index added 9.75 points, or 0.26 percent, to reach 3,739.27.
Inflation rate fell to 3.3 percent in August from 4.4 percent in July, according to the Philippine Statistics Authority (PSA). This brought the average inflation in the first eight months to 3.6 percent, falling within the government’s target range of 2 percent to 4 percent for the year.
Rizal Commercial Banking Corp. research head Michael Ricafort said the sharp decline in global crude prices to eight-month low also boosted investor sentiment.
Ricafort said this could reduce the country’s oil import bill, narrow the country’s trade deficit and help ease import costs.
Investors also cheered the continued strengthening of the peso against the dollar. The peso closed at 56.21 against the greenback Thursday, up from 56.58 Wednesday.
The PSEi’s next resistance target is 7,000, while support is at 6,780. Value turnover reached P4.59 billion, lower than year-to-date average of P5 billion.
Foreign investors were net buyers, with net inflows amounting to P258.97 million.
Services led gainers, climbing by 1.81 percent, while property declined by 1.23 percent.
Converge ICT Solutions Inc. was the top index gainers, which increased 4.79 percent to P15.30, while SM Prime Holdings Inc. lost 2.46 percent to P29.75.
