Philippine shares rise on slowed August inflation

Philippine shares recovered on Thursday as data showed headline inflation slowed more than expected in August, and may continue to climb this week due to further easing by the central bank.

The Philippine Stock Exchange (PSEi) index rose by 0.37% to end at 6,907.97, while the broader all shares index climbed by 0.26% to close at 3,739.27 on Thursday.

Investor sentiment improved with better-than-expected August consumer price index data, despite lingering concerns over the US economy’s health.

On Friday, the PSEi rose by 0.4%, or 28.12 points, to close at 6,936.09, while the broader all shares index went up by 0.36% to end at 3,752.86.

Analysts predict a continued upward bias for the PSEi this week, as slower-than-expected inflation could justify further policy easing and appreciation of the peso against the US dollar.