MANILA — The local index and currency continued to strengthen on the week’s last day of trading, following the central bank’s statement that inflation is expected to ease by second half of the year.
The Philippine Stock Exchange index (PSEi) on Friday rallied for the fifth day, closing at 6,411.911, up by 0.33 percent, while All Shares also increased by 0.26 percent to 3,486.66.
“(I)nvestors cheered the BSP’s (Bangko Sentral ng Pilipinas) signal of a possible rate cut by their August meeting, as well as its downward revision of the inflation forecast for this year and next year to 3.1 percent, within the government’s target of 2 to 4 percent,” Philstock Financials, Inc. research associate Claire Alviar said.
“The market returned above the 6,400 level, with a strong net market value turnover at PHP5.92 billion, higher than the PHP4.4 billion average this month,” she added.
Among indices, Mining and Oil and Financials recorded losses at 0.86 and 0.51 percent, respectively.
The biggest winner for the day was Holding Firms index, with shares up by 0.93 percent; followed by Property (+0.50 percent); Services (+0.49 percent); and Industrial (+0.10 percent).
Advancers led decliners at 109 to 85, leaving 52 unchanged.
Meanwhile, the peso closed the week strong gaining 0.14 to close at 58.61 to the US dollar from last day’s 58.75 finish.
The local currency started the day strong at 58.70 from Thursday’s kick off at 58.88 to a dollar.
The exchange rate ranged between 58.58 and 58.72, with an average rate of 58.66 to the greenback.
The volume of trade decreased by USD39 million to USD1.166 billion from USD1.205 billion. (PNA)
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