Stocks rise on easing inflation; peso plunges anew
The Philippine Stock Exchange index rose slightly as August inflation eased to 6.1 percent, meeting market expectations. Despite the stock market gains, the Philippine peso hit a new record low against the dollar due to external economic pressures.
Why it matters
The divergence between stock market performance and currency devaluation highlights the complex economic challenges facing emerging markets.
MANILA, Philippines - The local stock market finished the week with back-to-back wins as August inflation eased and came within market expectations, even as the peso again plunged to a fresh record low.
The bellwether Philippine Stock Exchange index (PSEi) rose by 0.35 percent or 21.18 points to end yesterday's session at 6,090.60.
The broader All Shares index also added 0.23 percent or 7.63 points, closing at 3,377.44.
RCBC chief economist Michael Ricafort said the PSEi corrected slightly higher for the second straight trading day amid the latest easing of headline inflation for the fourth straight month at 6.1 percent in August from 6.2 percent in July.
Ricafort said this was in line with market estimates and the slowest in five months or since March.
All sectors were in the positive territory, except for industrial, which slipped by 0.005 percent.
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