PSEi up amid inflation worries; peso ends sideways

MANILA, July 3 (PNA) — The Philippine stock market as well as the peso continued to enjoy on Thursday the recent positive manufacturing reports overseas despite concerns on possible uptick of domestic inflation rate.

The Philippine Stock Exchange index (PSEi) gained 0.71 percent or 48.71 points to 6,899.31 points.

All the sub-indices followed the main index, led by the property which rose 1.03 percent or 26.58 points to 2,615.93 points.

A trader said the positive sentiment on developments overseas overshadowed concerns on possible increase in the country’s inflation rate.

The government is scheduled to report the June 2014 inflation rate on Friday.

The central bank forecasts the June 2014 inflation to stay within 4.1 to 5.0 percent.

Last May, the rate of price increases went up to 4.5 percent from month-ago’s 4.1 percent, bringing the five-month average to 4.1 percent, at the upper half of the government’s three to five percent forecast this year.

Concerns about inflation, however, were dominated by the earnings report, making all the indices post gains, the trader said.

Volume of trade reached 1.37 billion shares amounting to P7.6 billion. Gainers led losers at 108 to 76 while 43 were unchanged.

Also, the peso ended sideways at P43.60 from P43.58 Wednesday.

A trader said the local currency moved in line with other Asian currencies, given the lack of economic data released during the day both here and overseas.

However, it is expected to react on Friday after the release of the United States’ non-farm payroll data for June, which is forecast to increase by 235,000.

Last May, non-farm payrolls in the world’s largest economy rose by 217,000.

The peso opened at P43.63, also sideways from the P43.60 a day ago. It traded between P43.69 and P43.59, bringing the day’s average to P43.63.

Volume of trade declined to USD 563.5 million against the USD 781.3 million a day ago.

For Friday, the peso is projected to trade between P43.60 and P43.80. (PNA)