September 7, 2024 | 12:00am
MANILA, Philippines — Share prices trekked higher at the week’s close on continuing optimism behind the country’s latest inflation result, while the peso rebounded strongly amid expectations of larger rate cuts from the US Federal Reserve.
The benchmark Philippine Stock Exchange index grew by 0.41 percent or 28.12 points to finish the week at 6,936.09, while the broader All Shares index likewise improved by 0.36 percent or 13.59 points to settle at 3,752.86.
“Philippine shares managed to eke gains as the positive CPI (consumer price index) data from Thursday managed to carry over into the weekend,” Regina Capital’s Luis Limlingan said.
Philstocks Financial research manager Japhet Tantiangco said the decline of inflation to 3.3 percent in August from 4.4 percent in July is seen to strengthen the case for the continuation of the monetary policy easing by the Bangko Sentral ng Pilipinas.
Tantiangco said investors also appreciated the peso’s strengthening against the dollar, which helped boost yesterday’s positive market performance.
Net value turnover expanded to P5.85 billion from P4.59 billion the previous day.
Holding firms led the sectors with a 0.96-percent rise, while services suffered the biggest drop at 0.82 percent.
Market breadth was positive in another tight contest, with advancers edging out decliners, 93 to 90, while 57 issues were unchanged.
Meanwhile, the peso bounced back to the 55 to $1 level as it gained 30.5 centavos to close at 55.905 yesterday 56.21 last Thursday. This marked the peso’s strongest close in almost six months or since its 55.92 per dollar close on March 19.
The peso almost touched the 59 to $1 handle several times in June and July before it appreciated back to the 56 to $1 level in August amid dovish signals from the US Fed.
UnionBank chief economist Ruben Carlo Asuncion said markets are expecting larger rate cuts from the Fed due to the weak labor data.
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