Shares inched higher on Tuesday as investors await the release of June inflation data.
The Philippine Stock Exchange index (PSEi) rose by 6.26 points or 0.09% to end at 6,514.47 on Tuesday, while the broader all shares index edged up by 5.11 points or 0.14% to close at 3,472.53.
“Philippine equities ended Tuesday’s session in the green… [as] investors remained vigilant ahead of the June inflation data on Wednesday. The streets expect the CPI (consumer price index) print to be at 5.5%,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“The market went up on hopes for a positive inflation surprise [on Wednesday], meaning below consensus estimate of 5.5%,” First Metro Investment Corp. Head of Research Cristina S. Ulang likewise said in a Viber message.
Headline inflation likely slowed for a fifth straight month in June amid stable food prices and high base effects, analysts said.
A BusinessWorld poll of 17 analysts held last week yielded a median estimate of 5.5% for June inflation, within the 5.3% to 6.1% forecast given by the Bangko Sentral ng Pilipinas (BSP).
If realized, this would be slower than the 6.1% print in May 2023 and June 2022. June would also mark the fifth consecutive month of slower inflation, and the 15th straight month that inflation surpassed the BSP’s 2-4% target.
The Philippine Statistics Authority will release June CPI data on July 5, Wednesday.
Mr. Limlingan added that trading volume remained weak due to a holiday in the United States.
Value turnover dropped to PHP 2.24 billion on Tuesday with 773.84 million shares changing hands from the PHP 2.45 billion with 1.54 billion issues seen on Monday.
Wall Street’s main indexes ended with slim gains in a holiday-shortened session on Monday, helped by a surge in Tesla and strength in bank shares as the second half of the year kicked off on a subdued note, Reuters reported.
Trading volumes were lighter than average as the stock market closed at 1 p.m. ET ahead of the July 4th Independence Day holiday on Tuesday.
The Dow Jones Industrial Average rose 10.87 points or 0.03% to 34,418.47; the S&P 500 gained 5.21 points or 0.12% at 4,455.59; and the Nasdaq Composite added 28.85 points or 0.21% at 13,816.77.
Back home, sectoral indices were split on Tuesday. Financials fell by 19.99 points or 1.07% to 1,836.13; property declined by 4.36 points or 0.16% to 2,650.21; and mining and oil dropped by 2.77 points or 0.02% to 9,966.39.
Meanwhile, industrials rose by 61.59 points or 0.67% to 9,214.82; services went up by 10.02 points or 0.64% to 1,571.97; and holding firms climbed by 34.10 points or 0.53% to 6,473.25.
Advancers outnumbered decliners, 90 versus 83, while 57 names closed unchanged.
Net foreign selling stood at PHP 16.7 million on Tuesday versus the PHP 222.3 million in net buying recorded on Monday. — AHH with Reuters
This article originally appeared on bworldonline.com