The benchmark 30-company Philippine Stock Exchange Index rose 5.05 points, or 0.2 percent, to 2,362.60, after a 2.1 percent increase Thursday.
The latest Philippine inflation report showed July consumer prices up 6.4 percent from 6.7 percent in June, in line with the Central Bank’s 6.3 percent to seven percent estimate. Bangko Sentral (BSP) Governor Amando Tetangco Jr. said slower July inflation widened the scope for holding interest rates steady at the Aug. 10 monthly rate-setting meeting.
"The decelerating inflation rate is positive. I think the Central Bank won’t do anything during its policy meeting next week. There’s no compelling reason for the Central Bank to do anything at this point," said Fitzgerald Aclan, an assistant vice president at Banco de Oro Universal Bank.
PLDT was the most actively traded stock, rising 1.5 percent to P2,095, reflecting expectations it will announce higher second-quarter earnings on Aug. 8. The company’s ADR’s rose 2.2 percent in New York trading Thursday.
In yesterday’s session, gainers led decliners 59 to 32, while 59 stocks were unchanged.
Globe Telecom rose one percent to P1,020 on strong first-half earnings. SM Prime was up 1.2 percent at P8.20 on higher second-quarter results.
Megaworld, a builder of residential and office towers, gained two centavos, or 1.3 percent, to P1.54, set to end the week 6.9 percent higher, its biggest weekly gain since the five-days ended May 12.
Leaving interest rates unchanged may encourage spending by consumers and expansion by companies.
First Philippine Holdings Corp., owner of the country’s largest electricity retailer and publicly traded power producer, gained P1, or 2.3 percent, to P44.50, trimming its loss for the week to 4.3 percent. Petron Corp., the nation’s largest oil company, added 15 centavos, or 3.5 percent, to P4.40.
Separately, SM Prime Holdings Inc., the nation’s largest shopping mall operator, rose 10 centavos, or 1.2 percent, to P8.20. The company said second-quarter profit grew nine percent to P1.3 billion. – AP