PSEi hits three-year high of 7,024.67 on positive US inflation data

The Philippine Stock Exchange index (PSEi) reached a three-year high of 7,024.67 on Thursday, driven by positive US inflation data and expectations of further rate cuts from the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve.

Philstocks Financial's Japhet Louis O. Tantiangco attributed the rise to improved investor sentiment following a decline in US headline inflation figures for August, which suggests potential monetary easing next week.

Rizal Commercial Banking Corp.'s chief economist Michael Ricafort noted that this is the first time the local bourse has closed above 7,000 since February 3, 2023.

Strong economic data and favorable inflation figures in both the US and Philippines have attracted more foreign fund flows into the local market, with Property leading gains at 1.40 percent.

However, the peso weakened to 56.20 per US dollar from its previous close of 55.98 due to the strengthening US dollar.