Stocks and peso advance; SMIC, Semirara top gainers

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The PSE index, the 30-company benchmark of the Philippine Stock Exchange, jumped 119 points, or 1.9 percent, to close at 6,286.77 as all six subsectors advanced. READ:

The PSE index, the 30-company benchmark of the Philippine Stock Exchange, jumped 119 points, or 1.9 percent, to close at 6,286.77 as all six subsectors advanced.

The peso also appreciated to a near two-month high against the US dollar following reports the inflation rate in the world’s biggest economy eased to 7.7 percent in October from 8.2 percent in September.The peso gained P0.96, or 1 percent, to close at 57.23 against the greenback, up from 58.19 on Thursday. It was the local currency’s strongest level since it settled at 57.16 on Sept. 15, 2022. Total volume reached $820.15 million, up from $792 million previously.

The peso on Wednesday returned to the 57 territory amid expectations that the Bangko Sentral ng Pilipinas would increase by 75 basis points the policy rate in its meeting next week. As US residents reel from sky-high costs, the central bank has moved forcefully to lower demand by raising the benchmark lending rate six times this year.

The dollar slumped against rival currencies following the data release, and shares rallied as investors cheered the prospect of less hawkish moves by the central bank.

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