Philippine shares closed higher Thursday, as investors anticipated the June inflation rate would remain below 2 percent despite recent oil price increases.
The peso also strengthened, trading at 56.25 to the U.S. dollar, up from 56.365 on Wednesday.
The 30-company Philippine Stock Exchange index rose 49.93 points, or 0.78 percent, to close at 6,468.98. The broader all-shares index gained 6.42 points, or 0.17 percent, to end at 3,803.33.”
The local market bounced back this Thursday on optimistic expectations that inflation last June had remained tepid despite certain upside risks, thereby giving Bangko Sentral ng Pilipinas (BSP) leeway to continue their policy easing,” said Japhet Tantiangco, research head at Philstocks Financial Inc.
Earlier this week, the BSP said June inflation likely ranged between 1.1 percent and 1.9 percent. It noted that upward pressure from elevated oil prices and the depreciation of the peso could be partially offset by lower prices of rice, fish, and fruits, as well as lower electricity rates.
Holding firms saw the largest gains, rising 1.26 percent, followed by financials, property, and mining and oil, which advanced 0.95 percent, 0.41 percent, and 0.10 percent, respectively.
In contrast, the services and industrial sectors declined by 0.59 percent and 0.34 percent.Approximately P9 billion worth of trades were routed through the local bourse. Foreign investors were net buyers for the day, with inflows of P1.1 billion.
GT Capital Holdings Inc. continued to lead the index, increasing 3.15 percent to P655 per share. Bloomberry Resorts Corp. was at the bottom, shedding 6 percent to P4.70 per share.
