The Philippine Stock Exchange index (PSEi) posted gains for the fifth consecutive day on Tuesday, driven by data showing slower June inflation.
The PSEi went up by 0.37% or 23.12 points to close at 6,247.11, while the broader all shares index rose by 0.11% or 3.89 points to end at 3,392.86. This marked a three-week high for the PSEi, its best finish since June 15.
Analysts noted that the inflation data came in better than expected, reinforcing optimism on the inflation outlook. The softer print, which also eased from the previous month, fueled buying pressure, they said.
Investors also cheered the decline in the country's inflation rate from May's 6.8% to June's 6.4%. International Container Terminal Services, Inc. (ICTSI) was the day's top index gainer, rising 3.97% to P930 each.
The June inflation rate of 6.4% was below the 6.6% median estimate in a recent poll of analysts and marked the second consecutive month of deceleration. However, this marked the fourth month in a row that inflation breached the Bangko Sentral ng Pilipinas’ (BSP) 2%-4% tolerance band.
For the first semester, the consumer price index averaged 4.8%, also above the BSP’s goal. BSP Governor Eli M. Remolona, Jr. said that the economy can handle one more 25-basis-point (bp) hike as they expect growth to rebound this semester on the back of likely faster government spending.
Most sectoral indices closed lower on Tuesday, with holding firms sinking by 1.27% or 57.80 points to 4,465.51. However, the services sector jumped by 2.76% or 88.53 points to 3,290.99, and financials rose by 0.14% or 2.78 points to 1,946.58.
Decliners outnumbered advancers, 97 to 82, while 61 names were unchanged. Net foreign buying increased to P770.42 million from P491.60 million in the previous session.
