Share prices climbed on Wednesday and pushed the benchmark index higher amid expectations inflation slowed further in March.
The Philippine Stock Exchange index (PSEi) rose 1.08 percent, or 66.96 points to close at 6,247.68.
The broader All Shares index inched up 27.24 points or 0.74 percent to 3,705.12.
“The local market managed to extend its gains this Wednesday, rising 1.08 percent to 6,247.68. The market rose further amid expectations that inflation had remained cool last March, giving the BSP (Bangko Sentral ng Pilipinas) more room to cut policy rates this April,” Japhet Tantiangco, analyst at Philstocks Financial Inc, said.
Michael Ricafort, Rizal Commercial Banking Corp. chief economist, said the local stock market’s gains came ahead of the latest local inflation data set for release on Friday, that could “remain benign” and near the lower end of the BSP’s inflation target range of two to four percent.
Five sectors were in positive territory, with financials on the lead, up by 2.86 percent.
Meanwhile, only the industrial index was in the red, shedding 0.38 percent.
Total value turnover reached P6.064 billion.
Earlier this week, the BSP said it projects the March 2025 inflation to settle within the range of 1.7 to 2.5percent. “Upward price pressures for the month emanate from higher electricity rates and higher prices for fish and meat,” the BSP said.
“Nonetheless, these are expected to be offset by lower prices of rice, fruits and vegetables, owing to favorable domestic supply conditions as well as the peso appreciation,” it added.
In a poll conducted by Malaya Business Insight last week, the mean average of estimates made by economists showed that inflation could have slowed further to 2.04 percent in March from 2.1 percent in February.
