MANILA – The three-year-low inflation headline in the United States gave mixed impact on the Philippine Stock Exchange index (PSEi) and the peso.
On Thursday’s trading, the PSEi rose 1.15 percent to close at 7,024.67, with All Shares gaining 0.68 percent to 3,791.65 points.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said this is the first time that the local bourse finished above the 7,000-mark in more than 19 months or since Feb. 3, 2023.
All counters closed in the green territory, with the highest gains coming from Property, up by 1.40 percent.
This is followed by Services, up by 1.28 percent; Holding Firms, 1.17 percent; Industrial, 0.64 percent; Financials, 0.58 percent; and Mining and Oil, 0.35 percent.
However, there are more companies that suffered from declines at 107 compared to 90 firms with gains. Sixty counters remained unchanged.
“The local bourse took cues from Wall Street’s overnight rise driven by the decline in the US’ headline inflation last August,” Philstocks Financial research manager Japhet Tantiangco said.
US inflation in August settled at 2.5 percent, the lowest in over three years.
This improves investors’ sentiment that the US Federal Reserve System will finally cut rate.
As the positive US inflation data came, it also strengthened the US dollar against the Philippine peso.
The peso weakened on Thursday to 56.20 to a US dollar from last day’s close of 55.98.
It opened at 56.08 before trading between 55.96 to 56.20.
The average level for the day settled at 56.07 to the greenback.
Volume of foreign exchange slipped to USD1.7 billion from USD1.71 billion on Wednesday. (PNA)