Philippine stocks climbed on Thursday amid expectations that domestic inflation remained below target last month despite an expected uptick due to the Iran-Israel conflict.
The Philippine Stock Exchange index (PSEi) jumped by 0.77% or 49.93 points to close at 6,468.98, while the broader all shares index climbed by 0.16% or 6.42 points to 3,803.33.
“The local market bounced back this Thursday on optimistic expectations that inflation last June had remained tepid despite certain upside risks, thereby giving the Bangko Sentral ng Pilipinas (BSP) leeway to continue their policy easing,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
The Philippine Statistics Authority is scheduled to release June inflation data on July 4 (Friday). A BusinessWorld poll of 17 analysts yielded a median estimate of 1.5% for the June consumer price index, faster than 1.3% in May but below the BSP’s 2-4% annual target, as the spike in fuel costs due to the Middle East conflict may have been offset by steady food prices.
“Local shares edged higher ahead of the June inflation report, with sentiment lifted by optimism over a new US-Vietnam trade deal,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
The United States will place a lower-than-promised 20% tariff on many Vietnamese exports, Donald J. Trump said on Wednesday, cooling tensions with its tenth-biggest trading partner days before the US president could raise levies on most imports, Reuters reported.
Vietnamese goods would face a 20% tariff and trans-shipments from third countries through Vietnam will face a 40% levy, he said. Vietnam could import US products with a zero percent tariff, he added.
Mr. Trump’s announcement comes just days before a July 9 deadline before he ramps up tariffs on most imports. Under that plan, announced in April, US importers of Vietnamese goods would have had to pay a 46% tariff.
Most sectoral indices closed in the green on Thursday. Holding firms went up by 1.25% or 70.63 points to 5,688.88; financials increased by 0.95% or 21.38 points to 2,268.24; property rose by 0.4% or 9.99 points to 2,464.66; and mining and oil climbed by 0.1% or 9.97 points to 9,523.39.
Meanwhile, services dropped by 0.59% or 12.81 points to 2,142.12 and industrials retreated by 0.33% or 30.72 points to 9,076.59.
“GT Capital Holdings, Inc. continues to lead the index, this day rising by 3.15% to P655. Bloomberry Resorts Corp. was at the tail end, plunging 6% to PHP 4.70,” Mr. Tantiangco said.
Value turnover increased to PHP 10.23 billion on Thursday with 1.77 billion shares traded from the PHP 7.77 billion with 792.46 million issues exchanged on Wednesday.
Decliners outnumbered advancers, 126 versus 84, while 60 names were unchanged.
Net foreign buying surged to PHP 1.11 billion on Thursday from PHP 258.04 million on Wednesday. — R.M.D. Ochave with Reuters
This article originally appeared on bworldonline.com