The Philippine Stock Exchange index (PSEi) rose on Wednesday, July 15, lifted by gains on United States (US) markets after a lower inflation rate eased fears of an aggressive US Federal Reserve (Fed) rate hike.

The main index gained 46.48 points, or 0.74 percent, to close at 6,302.5. Banks led the advance, while mining was the only declining sector.

Trading volume remained thin, however, dropping to 620 million shares worth ₱4.31 billion. Gainers outnumbered losers—96 to 88, while 63 issues were unchanged.

“The local market bounced back, taking cues from Wall Street’s overnight rise. This comes as the US’ June inflation rate came in at 3.5 percent, declining from the prior month’s 4.2 percent. The below-expected inflation eases worries over the Fed’s policy outlook,” said Philstocks Financial Inc. research manager Japhet Tantiangco.

He added, however, that trading remained tepid amid concerns over tensions in the Middle East.

Regina Capital Development Corp. managing director Luis Limlingan said, “The local bourse ended higher after two consecutive days of losses as bargain hunting lifted market sentiment. Buying interest re-emerged, with investors selectively accumulating blue-chip stocks following the recent pullback.”

Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said the PSEi also edged higher due to the continued growth in local banks’ total assets and the prospect of foreign investment in Energy Development Corp. (EDC).