Manila: The further easing of inflation has boosted trading in the local bourse while also strengthening the domestic currency against the US dollar. The Philippine Stock Exchange index (PSEi) recovered on Tuesday with the bellwether increasing by 0.93 percent to 6,418.69, while All Shares also went up by 0.72 percent to 3,746.12 points.

According to Philippines News Agency, except for Financials, which declined by 0.17 percent to 2,458.45, other sectoral indices closed the day with gains. The biggest jump came from the Services counter, which increased by 3.52 percent to 2,048.16; followed by Mining and Oil, up by 2.63 percent to 9,705.38; Industrial, up by 0.64 percent to 8,989.78; Holding Firms, up by 0.55 percent to 5,387.18; and Property, up by 0.06 percent to 2,300.97.

'Philippine shares managed to resume their gains, driven by the better-than-expected CPI (consumer price index) and more earnings releases,' Regina Capital Development Corp. head of sales Luis Limlingan said. The Philippine Statistics Authority earlier reported that April inflation stood at 1.4 percent, the lowest in more than five years, as oil and food prices continued to moderate.

'Value turnover reached PHP5.498 billion, with an almost equal number of winners (97) and losers (95), while 46 names remain unchanged,' Limlingan added. Meanwhile, the Philippine peso recovered, closing the day at 55.61 to the US dollar from its 55.77-finish on Monday. Although the peso started the day weaker at 55.80 from the previous day's kick-off at 55.57, the local currency traded between 55.51 and 55.90 to the dollar. The day's average stood at 55.71 to the greenback.

Trade volume slightly decreased to USD2.28 billion from USD2.3 billion on Monday.