Local shares rose for the second straight trading day, closing above the 6,300 level on Wednesday, after US equities hit fresh record highs on softer-than-expected inflation data.
The benchmark Philippine Stock Exchange index closed at 6,325.09, up 35.24 points, or 0.56 percent. The broader all-shares index ended at 3,764.64, up 13.37 points, or 0.36 percent.
The peso also strengthened to 56.72 to the US dollar on Wednesday, from 57.075 on Tuesday.
Regina Capital Development Corp. head of sales Luis Limlingan said expectations for a potential Federal Reserve rate cut next month were boosted after the U.S. inflation rate remained at 2.7 percent in July.
“Sentiment was lifted by the steady US inflation report which could influence the Fed’s monetary policy and overall investor sentiment in the country,” Limlingan said.
Holding firms led sectors, rising 1.48 percent, followed by financials, which increased by 1.12 percent.
Services, on the other hand, declined 10.92 percent, while mining and oil dipped 0.17 percent.
Value turnover was robust at P9.24 billion. Gainers outnumbered decliners 103 to 91, while 58 stocks were unchanged.
Shares of BDO Unibank Inc. jumped 4 percent to P143.80. The stock price of Universal Robina Corp. declined 2.54 percent to P80.55.
Markets rose Wednesday on growing hopes of US interest rate cuts after soft inflation data, with Japan’s Nikkei hitting a second record high in as many days.
The S&P 500 and Nasdaq finished at fresh highs Tuesday after US data showed a tamer-than-feared impact on prices from President Donald Trump’s tariff blitz.
That boosted hopes among that the US Federal Reserve and its embattled chief Jerome Powell will cut interest rates next month.
“Jerome ‘Too Late’ Powell must NOW lower the rate,” Trump said on Truth Social, while also threatening a “major lawsuit” over renovations to Fed buildings.
The US consumer price index reading for July showed annualized inflation at 2.7 percent, unchanged from a month earlier.
Investors calculated that the benign data was not enough to sway the Fed away from an expected interest rate cut next month.
“Stocks… took the (inflation) number as confirmation that September is shaping up to be the long-anticipated ‘insurance cut’ in an economy still treading water above the break-even line,” said Stephen Innes at SPI Asset Management. With AFP
Katy Stoves, investment manager at Mattioli Woods, warned however: “This gentle cooling of the economy will certainly not justify a cut of interest rates to one percent as President Donald Trump is calling for.”
Tokyo climbed 1.3 percent to a record high and Hong Kong rose 2.6 percent while Seoul, Shanghai, Taipei, Singapore, Kuala Lumpur, Bangkok and Jakarta also saw healthy gains.
Europe followed suit, with London, Frankfurt and Paris all higher in early trade.
Oil prices edged lower after OPEC raised its demand forecast for 2026, signaling it expected stronger global activity next year.
Investor focus was also on a summit in Alaska on Friday between Trump and Russian leader Vladimir Putin on the three-year-old Ukraine war.
In corporate news, AI firm Perplexity offered Google $34.5 billion for its Chrome web browser, which it may have to sell as part of antitrust proceedings.
Intel rose 5.5 percent on Wall Street after CEO Lip-Bu Tan met with Trump, who praised the executive after previously calling for him to step down. With AFP
