Philippine stock index rises 0.2% to 6,347.10 at open

Philippine stock index rises 0.2% to 6,347.10 at open

The Philippine stock market opened with a 0.2% increase on July 2, 2025, pushing the Philippine Stock Exchange index (PSEi) to 6,347.10. This rebound follows a period of market volatility driven by inflation concerns in the United States.

According to the latest data from the Philippine Stock Exchange, the main index rose by 1.88% or 121.99 points to 6,337.48 on Wednesday, July 17, 2025. The broader all shares index also saw a decline, dropping by 1.55% or 59.02 points to 3,748.25. This was the PSEi’s lowest close in three weeks [1].

The market's reaction was largely influenced by the U.S. inflation report, which showed a 0.3% increase in consumer prices in June, the largest gain since January. The U.S. consumer price index (CPI) climbed 2.7% year-over-year, exceeding economist expectations [1]. This data has implications for the Federal Reserve's rate-cut cycle, potentially leading to a pause in policy rate adjustments.

Analysts attributed the Philippine market's decline to profit-taking as investors digested the hotter-than-expected June inflation data from the U.S. "The local market plunged this Wednesday as investors dealt with the rise in the US’ inflation last June and its implications on the Federal Reserve’s policy outlook," said Japhet Louis O. Tantiangco of Philstocks Financial Inc. [1].

Despite the recent volatility, the Philippine market has shown resilience. The market valuation and performance have remained relatively stable over the past few years. As of July 2, 2025, the market capitalization was at ₱14.4 trillion, revenue at ₱13.6 trillion, and earnings at ₱1.2 trillion, with a Price-to-Earnings (PE) ratio of 9.2x [3].

The opening rally on July 2, 2025, suggests that investors are cautiously optimistic about the market's prospects. However, the ongoing geopolitical tensions and global economic uncertainties could continue to impact market sentiment.

References:
[1] https://www.bworldonline.com/stock-market/2025/07/17/685654/psei-slides-to-6300-level-after-us-inflation-report/
[3] https://simplywall.st/markets/ph