Market Bets On Softer Inflation
Philippine shares extended their rally for a fourth straight session on July 6, with both GMA News Online and BusinessWorld Online reporting that investors were buying ahead of the Philippine Statistics Authority’s June inflation release.
The Philippine Stock Exchange index gained 35.96 points, or 0.58%, to close at 6,223.99. The broader All Shares index added 18.03 points, or 0.53%, to 3,388.97. BusinessWorld described the benchmark’s finish as its best close since June 16, when it ended at 6,245.75.
Regina Capital Development Corp. head of sales Luis Limlingan told GMA that the market returned to the 6,200 level on continued buying interest and positive sentiment. BusinessWorld also cited Philstocks Financial Research Manager Japhet Louis O. Tantiangco, who said optimism around inflation and lower global oil prices supported bargain hunting.
Inflation Data Remains The Key Test
The market move was still anticipatory, not a confirmed reaction to the June inflation print. GMA reported that the Philippine Statistics Authority was scheduled to release the data on Tuesday, July 7. BusinessWorld reported a median analyst estimate of 6.6%, below May’s 6.8%, while the Bangko Sentral ng Pilipinas expected the print to land within a 6% to 7% range.
That framing matters for readers: the July 6 rally was driven by expectations that price pressure may have eased, not by a final June number already in hand. The central bank’s 2% to 4% target also keeps the inflation discussion important even if the monthly figure slows.
Sector Gains Broaden, But Turnover Stays Thin
Most sectoral counters finished higher. BusinessWorld reported gains of 1.85% for financials, 1.18% for industrials, 1.69% for holding firms, 1.07% for property, and 0.66% for mining and oil. Services was the outlier, declining 1.71%.
ACEN Corp. led index gainers with a 3.55% advance to P3.21, while Puregold Price Club, Inc. was the main laggard, falling 2.78% to P40.20, according to BusinessWorld. Turnover rose to P6.50 billion from P4.45 billion in the previous session, but BusinessWorld said trading activity remained weak as many investors stayed on the sidelines.
Peso Slips As Stocks Rise
The peso moved in the opposite direction of equities. GMA reported that the currency shed 7.6 centavos to finish at P61.491:$1, compared with P61.415:$1 in the previous session.
The next read for markets is straightforward: if inflation eases in line with expectations, it may reinforce the risk-on tone that lifted the PSEi. If the print disappoints, the same thin trading backdrop that analysts noted could make the index’s recovery more fragile.
Find more market and policy coverage in our Business section.
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