PSEi rebounds on softer US inflation
Philippine stocks bounced back on Wednesday as easing inflation in the United States boosted risk appetite, although investors remained cautious amid lingering geopolitical tensions in the Middle East.
The benchmark Philippine Stock Exchange Index (PSEi) climbed 0.74 percent or 46.48 points to close at 6,302.5, recovering from the previous session’s decline.
According to brokerage Philstocks Financial Inc., the local market tracked Wall Street’s overnight gains after US inflation slowed more than expected.
US consumer prices rose 3.5 percent in June, easing from 4.2 percent in May, helping temper concerns over the US Federal Reserve’s policy path.
“The below-expected inflation in the US eases worries over the Federal Reserve’s policy outlook,” Philstocks said.
Luis Limlingan, head of sales at Regina Capital Development Corp., said buying interest reemerged, with investors selectively accumulating blue-chip stocks following the recent pullback.
“Gains were supported by improved risk appetite tracking global markets, although overall trading remained thin,” Limlingan added.
Net value turnover reached only P4.11 billion, remaining below robust trading levels as many market participants stayed on the sidelines.
Foreign investors, however, provided support, ending the session as net buyers with net inflows of P280.04 million.
Sectoral performance was broadly positive, with banks leading the advance after gaining 1.13 percent. Mining and oil was the lone decliner, slipping 0.61 percent.
DigiPlus Interactive Corp. emerged as the day’s top performer, climbing 3.50 percent to P11.24.
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