WITHIN EXPECTATIONS. The main stocks gauge rises anew on Tuesday (July 5, 2022) due to within-expected rise of domestic inflation rate last June but the peso weakens against the US dollar. Inflation rate in the sixth month this year accelerated further to 6.1 percent from month-ago's 5.4 percent as oil prices continue to rise and impact on other commodity prices. (PNA file photo)
MANILA – The main equities index rose anew on Tuesday, leading a positive close for all counters in the local bourse, but the peso weakened against the greenback.
The Philippine Stock Exchange index (PSEi) increased by 2.04 percent, or 126.37 points, to 6,309.99 points.
All Shares followed with a jump of 1.50 percent, or 50.24 points, to 3,398.70 points.
Property led the sectoral indices after rising by 3.41 percent and was trailed by Financials, 2.44 percent; Industrial, 1.90 percent; Holding Firms, 1.47 percent; Mining and Oil, 1.15 percent; and Services, 0.79 percent.
Volume was thin at 509.22 million shares amounting to PHP3.98 billion.
Advancers led decliners at 119 to 71, while 46 shares were unchanged.
“Philippine shares continued to be bought up as the latest CPI (consumer price index) came in within expectations, and while fund managers await the US to resume trading from the long holiday,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
The Philippine Statistics Authority (PSA) reported during the day the further acceleration of the domestic inflation rate to 6.1 percent last June, the highest since October 2018, from the previous month’s 5.4 percent due largely to the increase in oil prices.
Limlingan said the inflation uptick is expected, citing earlier hints from the Bangko Sentral ng Pilipinas (BSP) about the jumps in the prices of key food items as well as the weakening of the peso against the US dollar.
Meanwhile, the peso depreciated further to its nearly 17-year low of 55.23 against the US dollar, its weakest since Oct. 25, 2005 when it closed the trade at 55.26 from 55.08 on Monday.
It opened the day at 55.00, weaker compared to its 55.12 start in the previous session.
It traded between 55.25 and 54.98, bringing the day’s average to 55.084.
Volume reached USD1.29 billion, higher than the previous day’s USD976.26 million. (PNA)
