Local share prices continue to benefit from improved sentiment following the release of May’s inflation number which turned out to be lower than feared.

The main index rose by 68.54 percent or 1.06 percent to close at 6,509.86 as the Services sector led the advance although Miners retreated. Volume declined to 332 million shares worth P4.64 billion as gainers beat losers 102 to 81 with 60 unchanged.

“The local bourse extended its gains as investors digested the better-than-expected inflation print for May and anticipated that the Fed might lower interest rates later this year,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He explained that, “This sentiment was bolstered by the slowdown in private payroll data, which reported 152,000 new jobs last month, adding to evidence of a weakening labor market that investors believe could prompt the Federal Reserve to cut benchmark interest rates.”

Philstocks Financial Research and Engagement Officer Mikhail Plopenio said “This Thursday, the local market rose as investors continued to digest the Philippines’ May inflation data which remained within the government’s 2 percent to 4 percent target range.”

“The positive spillovers from Wall Street overnight amid a lower-than-expected jobs report in the US also helped in today’s session as it sparked Federal Reserve rate cut hopes,” he added.