PSEi climbs on dovish BSP outlook

The Philippine Stock Exchange index (PSEi) started the trading week in the green, gaining 29.43 points or 0.46 percent to close at 6,425.24 on Monday, lifted by expectations of a more accommodative policy stance from the Bangko Sentral ng Pilipinas (BSP) following softer inflation data for June.

Investors also monitored global developments, including the United States’ move to delay the implementation of reciprocal tariffs to 1 August for countries still without trade agreements with Washington. The extension offered some breathing room for international markets.

Market activity remained brisk, with total value turnover reaching P6.93 billion. Foreign investors turned net buyers, recording net inflows of P107.24 million.

Sectoral performance was mixed. The banking sector led the gainers with a 0.88 percent rise, while mining and oil posted the biggest decline, falling by 2.32 percent. Market breadth was slightly negative, with 100 decliners edging out 96 advancers.

“Philippine shares closed slightly above the 6,420 level, ahead of upcoming employment and industrial data to be released tomorrow,” said Luis Limlingan, head of sales at Regina Capital Development Corporation. 

“Meanwhile, Wall Street remained flat last Friday as markets were closed in observance of Independence Day, with June seeing stronger print in job growth and a lower drop in unemployment.”

On the currency front, the peso opened at 56.48 and weakened by the close to 56.685 against the US dollar, with an average rate of 56.592, based on data from the Bankers Association of the Philippines.