Manila: Both the Philippine Stock Exchange index (PSEi) and the peso saw gains on Thursday, driven in part by optimistic expectations regarding domestic inflation rates, just a day before the anticipated release of the June 2025 figures. The main stocks gauge climbed 0.78 percent to reach 6,468.98 points, while the broader All Shares increased by 0.17 percent to 3,803.33 points.

According to Philippines News Agency, most sectoral indices followed the upward trend of the PSEi, with Holding Firms leading the way, having increased by 1.26 percent. It was followed by Financials with a rise of 0.95 percent, Property with an increase of 0.41 percent, and Mining and Oil which edged up by 0.10 percent. In contrast, the Services sector fell by 0.59 percent and Industrial decreased by 0.34 percent. The trading volume reached 1.77 billion, amounting to PHP10.23 billion, with losers outnumbering gainers at 126 to 84, while 60 shares remained unchanged.

Rizal Commercial Banking Corporation's chief economist, Michael Ricafort, noted that the PSEi's close on Thursday marked its highest level since May 14, 2025, attributed to positive expectations regarding a ceasefire in the Middle East, an improving peso against the US dollar, and the anticipated favorable inflation data for June. The Philippine Statistics Authority is set to release this data on Friday. The inflation rate in May had registered a five-and-a-half-year low of 1.3 percent, and although a slight increase is expected for June, it is anticipated to remain below the central bank's target band of 2-4 percent. Ricafort emphasized that this scenario could justify further local policy rate cuts in the upcoming months.

The local currency concluded Thursday's trading at 56.25 per US dollar, improving from its previous close of 56.36. It opened the day at 56.33 and traded between 56.34 and 56.21, with an average of 56.28 for the day. The trading volume declined to USD1.46 billion from the previous session's USD1.59 billion.