Stocks rise on easing inflation; peso plunges anew
The local stock market finished the week with back-to-back wins as August inflation eased and came within market expectations, even as the peso again plunged to a fresh record low.
Manila, Philippines — The Philippine stock market concluded the week with successive gains, as August inflation data revealed a slowdown, falling in line with market forecasts. The Philippine Stock Exchange index (PSEi) increased by 0.35 percent or 21.18 points, closing at 6,090.60, while the broader All Shares index also rose by 0.23 percent or 7.63 points, ending the day at 3,377.44.
RCBC chief economist Michael Ricafort noted that the PSEi maintained a slight upward trend for the second consecutive trading day, fueled by the latest easing of headline inflation for the fourth month in a row, at 6.1 percent in August compared to 6.2 percent in July. This pace was the slowest in five months, since March. All sectors witnessed positive performance, except for the industrial sector, which experienced a marginal decline of 0.005 percent.
The mining and oil index recorded the highest increase at 0.75 percent, followed by holding firms, which saw a gain of 0.49 percent. Trading activity was subdued, with the total turnover value falling to P3.86 billion from the previous day's P5.24 billion. Advancers outnumbered decliners, with a ratio of 108 to 93, and 54 issues remained unchanged.
ICTSI emerged as the most actively traded stock, surging by 0.43 percent to P934.50 per share, while Apex Mining and Metrobank also experienced gains of 0.12 percent and remained unchanged, respectively, at P17.20 and P65.85. The Bankers Association of the Philippines reported that the peso weakened to 62.59 per dollar, a fresh record low, from the previous day's close of 62.52.
The local currency opened at 62.43 and declined to as high as 62.65 during the trading day. UnionBank chief economist Ruben Carlo Asuncion attributed the peso's depreciation to external factors, including a strong dollar, rising US yields, and market skepticism ahead of the US nonfarm payrolls report.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
