The local bourse sustained its rally on Thursday on the back of positive sentiment arising from weaker August inflation data, withdrawal of the controversial Hong Kong extradition bill and softening Brexit tension.
The benchmark Philippine Stock Exchange index (PSEi) rose by 0.73 percent or 57.33 points to close at 7,898.19, while the wider All Shares climbed by 0.43 percent or 20.51 points to finish at 4,774.28.
“Philippines after the August [inflation] came in better than expected at 1.7 percent, and following the withdrawal of an extradition bill in Hong Kong and easing of Brexit tensions in Britain helped sentiment,” Regina Capital Development Corp. head of sales Luis Limlingan said.
Markets were already on an upward trajectory after the leader of Hong Kong on Wednesday withdrew a controversial extradition bill that sparked months of violent protests in the financial hub.
But the good news kept coming as the day wore on, with news that Italy had formed a new moderate, pro-European government, while British members of parliament moved closer to passing a law preventing a no-deal Brexit.
On the local front, the Philippine Statistics Authority (PSA) said on Thursday consumer price growth slowed to 1.7 percent in August, the lowest since the 1.8 percent registered in October 2016.
The latest inflation figure was lower than the 2.4 percent in July and 6.4 percent in August 2018.
The Bangko Sentral ng Pilipinas earlier pegged last month’s inflation forecast between 1.3 percent and 2.1 percent, lower than the 2.4 percent in July and 5.7 percent in August last year.
AAA Equities head of research Christopher Mangun, meanwhile, said the local bourse may breach the 8,000 level today if the rally continues.
“The other alternative is it ends the week flat. We do not see anything particularly negative as of the moment,” he added.
The Dow Jones, S&P 500 and Nasdaq surged by 0.91 percent, 1.08 percent and 1.30 percent, respectively.
Most Asian markets advanced on Thursday.
Tokyo, China, Seoul, Jakarta, Singapore and Thailand were up by 2.12 percent, 0.96 percent, 0.82 percent, 0.40 percent, 0.38 percent and 0.45 percent, respectively.
In contrast, Hong Kong dropped by 0.03 percent.
In Manila, all sectors were up except for mining and oil which dipped by 3.66 percent.
Over 869.68 million shares amounting to P7.11 billion were traded.
Winners trumped losers, 113-77, while 53 issues were unchanged. WITH A REPORT FROM AFP