MANILA, Philippines — Investors brushed off faster inflation data released on Wednesday, as traders cheered the possibility of an earlier interest rate cut, lifting the local stock market above the 6,400 level.
By the closing bell, the benchmark Philippine Stock Exchange Index (PSEi) climbed by 0.86 percent, or 54.90 points, to end at 6,441.32. The broader All Shares Index likewise rose by 0.43 percent, or 14.65 points, to 3,453.69.
A total of 377.15 million shares worth P4.74 billion changed hands, stock exchange data showed.
READ: BSP hints at policy rate easing by August
“The statement from the BSP (Bangko Sentral ng Pilipinas) regarding the possibility of cutting policy rates ahead of the Federal Reserve raised hopes, which added to the positive sentiment,” said Mikhail Plopenio, researcher at Philstocks Financial Inc.
The Philippine Statistics Authority on Wednesday reported that inflation accelerated to 3.9 percent in May from 3.8 percent in April due to higher costs of housing, utilities, gas, and transportation.
READ: May inflation rises to 3.9%, highest in five months
Despite this, nearly all sub-sectors rose. Holding firms gained by 1.78 percent, buoyed by an increase in index heavyweights SM Investments Corp. and Ayala Corp.
SM Investments was the top-traded stock as it rose by 3.91 percent to P850 per share.
It was followed by International Container Terminal Services Inc., up by 0.42 percent to P335; Aboitiz Equity Ventures, down 0.79 percent to P37.70; BDO Unibank Inc., up 0.8 percent to P138; and Ayala Land Inc., up 0.72 percent to P27.85 each.
Bank of the Philippine Islands was unchanged at P590 per share. Other actively traded stocks were Ayala Corp., up 0.17 percent to P590; Jollibee Foods Corp., down 0.27 percent to P223; Bloomberry Resorts Corp., up 2.94 percent to P10.50; and SM Prime Holdings Inc., up 1.51 percent to P26.90 each.
Advancers edged out losers, 103 to 82, while 46 companies closed unchanged. —MEG J. ADONIS INQ