Manila: Anticipations for a hike in the Federal Reserve's key rates by July 29 eased following the decline in the US' Producer Price Index (PPI) last June, benefiting both the Philippine Stock Exchange index (PSEi) and the Philippine peso.

According to Philippines News Agency, the US' PPI in the sixth month this year went down by 0.3 percent, bringing the year-to-date level to 5.5 percent, which is lower than May's 6.5 percent. As a result, the local bourse's main index rose 0.36 percent to 6,325.15 points, and the broader All Shares increased by 0.45 percent to 3,413.71 points.

Most sectoral gauges also experienced growth during the day, with Mining and Oil increasing by 2.90 percent, Holding Firms by 0.95 percent, Financials by 0.88 percent, and Property by 0.74 percent. However, Services fell by 0.23 percent and Industrial decreased slightly by 0.006 percent. Volume remained thin at 794.6 million shares, amounting to PHP7.42 billion. Advancers led decliners at 117 to 78, while 57 shares remained unchanged.

'The local market extended its climb as concerns over the Federal Reserve's policy outlook continue to ease. This comes as the US' June producer price index posted a decline of 0.3 percent,' Philstocks Research noted in a report.

Similarly, the local currency gained strength against the US dollar, ending the day's trade at 61.62, an improvement from Wednesday's 61.68. It opened the day flat at 61.6, trading between 61.7 and 61.6, with an average of 61.64. Volume reached USD 1.29 billion, up from the previous session's nearly USD1.15 billion.