The still high inflation rate in March of 7.6 percent that was reported in April 5, 2023 was one of the key factors in the PSEi average dipping by 0.82 percent to 6,515.52 points in April.

But in May 6, 2023, the government reported that first-quarter GDP growth reached 6.4 percent, which helped improve investor sentiment in the Philippine stock market.

“Rather, the economy is normalizing its previous trend. The better-than-expected first-quarter performance this year implies that we are returning to our high-growth trajectory despite the various challenges and headwinds we have faced,” said Socioeconomic Planning Secretary Arsenio Balisacan.

Also, the April inflation rate went down to 6.6 percent, and the BSP did not announce an increase in policy rates after its Monetary Board met on May 18, 2023.

In a report on May 11, 2023, Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said the 6.4-percent GDP growth in the third quarter surpassed expectations, and that inflation was expected to go down in the coming months.

Those positive factors caused the PSEi average in May to increase by 1.38 percent to 6,606.24 points.

The only major negative factor in May was the US Federal Reserve raising policy rates in the United States, the third time for 2023.

Although the month of June saw the BSP announcing no policy rate hikes as inflation in May went down further to 6.1 percent, the PSEi average went down by 1.93% to 6,481 points.

It was in July that the PSEi average increased by 1.06 percent to 6,551.70 points with the lower 5.4-percent inflation rate in June helping improve investor sentiment.