Both the Philippine Stock Exchange index and the peso improve on Tuesday (July 8, 2025) on expectations for another hike in the Bangko Sentral ng Pilipinas’ key rates. This, after the June 2025 inflation rate remained below the central bank’s 2 percent to 4 percent target band even if it accelerated to 1.4 percent last June from month-ago’s 1.3 percent. (PNA graphics)
The Philippine stock market and peso both advanced on Tuesday, buoyed by investor hopes that the Bangko Sentral ng Pilipinas (BSP) will continue easing its monetary policy following soft inflation data.
The benchmark Philippine Stock Exchange index (PSEi) gained 0.13% to close at 6,433.60, while the broader All Shares index edged up 0.11% to 3,784.17.
Only two sectoral indices finished in the green—Services rose 0.77%, and Holding Firms added 0.66%. The rest ended in the red, led by Mining and Oil, which dropped 0.43%. Financials fell 0.36%, Property dipped 0.26%, and Industrials slipped 0.02%.
Trading volume reached 1.06 billion shares valued at PHP6.96 billion. Market breadth was positive, with 104 gainers edging out 96 losers, while 56 issues were unchanged.
“Local shares closed slightly higher, supported by dovish expectations on the BSP’s policy stance following soft June inflation data,” said Luis Limlingan, head of sales at Regina Capital Development Corporation.
The Philippine Statistics Authority (PSA) recently reported a minor uptick in June inflation to 1.4% from 1.3% in May—still the lowest since November 2019. Despite the increase, inflation for the first half of 2025 remains well below the BSP’s 2% to 4% target range, giving policymakers room to further loosen monetary policy.
So far this year, the BSP has reduced its key interest rates by a total of 50 basis points, bringing the overnight reverse repurchase (RRP) rate to 5.25%.
The peso also benefited from easing expectations, strengthening to 56.35 against the US dollar by the end of Tuesday’s session—an improvement from the previous day’s 56.68 close. It opened flat at 56.55, which was also its weakest level of the day, before firming up to 56.35 at mid-day. The day’s average stood at 56.44.
Foreign exchange trading volume rose to $1.67 billion, up from $1.53 billion on Monday.