Peso, stock market lifted by slower-than-expected US inflation

THE peso and the stock market both rose on Wednesday following news that US inflation had slowed more than expected in October.

The currency strengthened by 23-and-a-half centavos to P55.825 against the dollar, while the benchmark Philippines Stock Exchange index (PSEi) added 60.25 points, or 0.99 percent, to end the day at 6,171.13.

The broader All Shares gained 0.65 percent, or 21.44 points, to 3,307.72.

Claire Alviar, research associate at Philstocks Financial Inc., said the easing in US inflation raised hopes among investors that the Federal Reserve «might halt its interest rate hikes.»

Locally, investors, meanwhile, continued to await the results of today's Monetary Board policy meeting, she added.

China Bank Capital Corp. Managing Director Juan Paolo Colet and Regina Capital Development Corp. Managing Director Luis Limlingan also said that the bourse edged higher due to the lower-than-expected US inflation rate.

«Investors have also started to anticipate that the Bangko Sentral ng Pilipinas will keep rates steady in its policy meeting on Thursday,» Colet added.

The peso, meanwhile, opened trading at P55.78:$1 and ranged from P55.7 to P55.865. Volume reached P1.484 billion, slightly higher than the previous session's P1.429 billion.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the peso gained after the dollar weakened following the release of the US inflation data.

"[The] peso is also stronger on continued growth in OFW (overseas Filipino worker) remittances, to among record highs on a monthly basis," he added.

At the stock market, industrials were the day's sole sectoral decliner, dipping by 0.07 percent.

Property gained the most at 1.49 percent.

Volume improved slightly to just over 447.76 million shares worth some P4.52 billion.

Advancers and decliners were even at 84 each while 47 were unchanged.