Within-target inflation backs bourse, peso sustains shedding

By Kris Crismundo

June 5, 2024, 6:30 pm

MANILA – As the May inflation remained within the 2 to 4 percent target of the government, the local bourse gained strength during the mid-week trading, while the peso continued its shedding.

The benchmark Philippine Stock Exchange index (PSEi) closed the day higher by 08.6 percent, climbing to 6,441.32 points.

All Shares, likewise, finished in the green territory gaining by 0.43 percent and closing at 3,453.69.

Only Mining and Oil, and Industrial counters fell in the red on Wednesday’s trading, down by 0.57 and 0.05 percent, respectively.

The top gainer for the day was the Holding Firms sector, which increased shares by 1.78 percent. Other indices that ended in the green were Property (+0.92 percent), Services (+0.41 percent), and Financials (+0.34 percent).

Philstock Financials, Inc. research and engagement officer Mikhail Plopenio said investors cheered the latest inflation data which settled at 3.9 percent in May 2024, only an uptick from 3.8 percent in its previous month, and lower than the 6.1 percent rate in May 2023.

“The statement from the BSP [Bangko Sentral ng Pilipinas] regarding the possibility of cutting policy rates ahead of the Federal Reserve raised rate cut hopes which added to the positive sentiment,” Plopenio added.

Regina Capital Development Corp. head of sales Luis Limlingan also said the local bourse has mirrored the move of the US equities.

There were more winners than losers on Wednesday at 103 to 82, with 46 remained unchanged.

Meanwhile, the Philippine peso continued to shed finishing at 58.78 to the US dollar from 58.71 close on Tuesday.

It kicked off the day weak at 58.80 from the last day’s start at 58.62 to a dollar.

The currency pair traded from a low of 59.65 to a high of 58.80, with the weighted average for the day settling at 58.73 to the greenback.

Trade volume was flat on Wednesday at USD1.32 billion, the same level of volume as the previous day. (PNA)