Philippine stocks extended their gains on Thursday as softer U.S. inflation data reduced expectations of a Federal Reserve rate hike and investors looked ahead to strong second‑quarter corporate results.
The Philippine Stock Exchange index rose 0.35%, adding 22.65 points to close at 6,325.15, while the broader all‑shares index gained 0.44%, ending at 3,413.71. This marked the index’s best close since early March.
“The local market extended its climb as concerns over the Federal Reserve’s policy outlook continue to ease. This comes as the U.S. June producer price index posted a decline of 0.3%,” said research manager Japhet Louis O. Tantiangco in a Viber message.
Soft U.S. producer‑price data, combined with benign consumer‑inflation figures released a day earlier, led markets to price the probability of an imminent Fed rate hike at just 10%, down from 43% earlier in the month.
Oil prices rose amid renewed Middle East hostilities, yet bond investors focused on the cooler inflation backdrop. Two‑year Treasury yields edged up 2 basis points to 4.1514%, while ten‑year yields rose 1 basis point to 4.5594%.
“The local bourse stayed in positive territory as investors maintained a cautiously optimistic stance ahead of the corporate earnings season, already pricing in some second‑quarter financial results. Buying interest in select blue‑chip stocks helped keep the benchmark index afloat despite lingering external uncertainties,” said Luis A. Limlingan.
Four of six sectoral indices closed higher: mining and oil climbed 2.9% to 14,732.84, holding firms rose 0.94% to 4,398.13, financials increased 0.88% to 1,939.83, and property gained 0.74% to 1,905.89. Services slipped 0.22% to 3,459.77, and industrials fell 0.47% to 8,337.62.
Advancers outnumbered decliners 117 to 78, with 57 stocks unchanged.
PLDT, Inc. led gainers, jumping 3.86% to P1,238, while Semirara Mining and Power Corp. was the main laggard, dropping 3.83% to P20.10.
Value turnover rose to P7.42 billion, with 794.59 million shares traded, up from P4.31 billion and 620.68 million shares the day before.
Net foreign buying decreased to P195.39 million from P280.04 million in the previous session.
