PSEi climbs as investors bet on mild inflation

The Philippine Stock Exchange index (PSEi) snapped a three-day losing streak on Thursday, closing 0.78 percent higher at 6,468.98, as investors priced in expectations of mild June inflation that may give the Bangko Sentral ng Pilipinas (BSP) more room to ease monetary policy.

June inflation data is scheduled for release on Friday, with analysts hoping the figure will remain within the government’s target range despite lingering upside risks.

Trading was robust, with net value turnover reaching P9.01 billion, well above the year-to-date daily average of P5.76 billion. Foreign investors were net buyers for the day, posting net inflows of P1.11 billion.

Among the sectors, conglomerates led the advance, gaining 1.26 percent. Services lagged behind, falling 0.59 percent. Overall market breadth was negative, with 126 losers edging out 84 gainers.

“Local shares edged higher ahead of the June inflation report due tomorrow, with sentiment lifted by optimism over a new US-Vietnam trade deal,” said Luis Limlingan, head of sales at Regina Capital Development Corporation.

“However, weak US ADP jobs data tempered gains, reinforcing expectations of a Fed rate cut this July.”

Limlingan also noted that “Trump’s tax megabill cleared the Senate and now returns to the House,” while safe-haven demand pushed gold prices higher amid policy uncertainty and ahead of the 9 July tariff deadline. Oil prices, he added, held steady as markets weighed a possible OPEC+ output hike in August alongside ongoing global trade negotiations.

In the foreign exchange market, the peso opened at 56.33 against the US dollar and strengthened slightly to close at 56.25. The average rate for the day stood at 56.281, based on data from the Bankers Association of the Philippines.