PSEi hits 20-month high as inflation eases

Philippine shares concluded the trading week on a high note, with the Philippine Stock Exchange index (PSEi) surging by 1.9% to close at a 20-month high of 7,340.77.

Investors were buoyed by the country's inflation rate easing to 4.6% in October, which was lower than the consensus forecast of 4.9%.

This slowdown in inflation was partly attributed to decelerating meat inflation, which offset higher vegetable and fruit prices.

The government's decision to further ease quarantine restrictions in Metro Manila and a stream of strong third-quarter corporate earnings also contributed to the positive market sentiment.

Analysts noted that these factors created a more optimistic economic outlook for the Philippines as pandemic-related restrictions continue to loosen.