The Philippine stock market and the peso both closed higher on Thursday, riding a wave of optimism ahead of the release of June’s inflation data. The upbeat sentiment was driven by expectations that inflation would stay within manageable levels, boosting investor confidence across the board.
The Philippine Stock Exchange index (PSEi) surged 0.78 percent, gaining 50.21 points to settle at 6,468.98—its highest close since May 14, 2025. The broader All Shares index also edged higher by 0.17 percent to 3,803.33.
Sectoral indices largely mirrored the main index’s climb. Holding Firms led the rally with a strong 1.26 percent gain, followed by Financials at 0.95 percent, Property at 0.41 percent, and Mining and Oil at 0.10 percent. However, not all sectors shared the same momentum—Services dropped by 0.59 percent, while Industrials slipped 0.34 percent.
Trading activity was robust, with volume reaching 1.77 billion shares valued at PHP 10.23 billion. Despite the upbeat close, decliners still outnumbered advancers, 126 to 84, while 60 stocks remained unchanged.
According to Rizal Commercial Banking Corporation chief economist Michael Ricafort, several positive developments helped push the index higher—including a stronger peso, hopes for a ceasefire in the Middle East, and investor anticipation of favorable inflation data.
Last May, inflation hit a five-and-a-half-year low of 1.3 percent. While a slight uptick is expected for June, projections remain confident that the rate will stay within the Bangko Sentral ng Pilipinas’ 2 to 4 percent target range. This opens the door for possible interest rate cuts in the near term, Ricafort noted.
In the currency market, the peso also made strides. It closed at 56.25 against the US dollar, gaining 11 centavos from the previous day’s finish of 56.36. The local currency opened at 56.33 and ranged between 56.21 and 56.34, averaging 56.28 throughout the day.
Dollar trading volume, however, eased to $1.46 billion from Wednesday’s $1.59 billion, signaling a slightly more cautious tone among currency traders despite the peso’s gains.
All eyes now turn to Friday, when the Philippine Statistics Authority releases the official inflation report for June—a key data point that could set the tone for markets in the weeks ahead.
