PSEi ‘lethargic’ amid expectations of rate cut

The Philippine Stock Exchange Index (PSEi) clawed back to the green zone on Tuesday as investors hunted for cheap stocks.

However, the index barely moved by the end of the session, as it just added 0.09 percent or 5.11 points to close at 5,994.4.

The broader All Shares, meanwhile, dropped 1.93 percent or 68.28 points to 3,475.5.

Services led the sectors, climbing 1.95 percent. Mining and oil, on the other hand, suffered the biggest losses.

According to Philstocks financial research manager Japhet Tantiangco, trading on Tuesday remained “lethargic” with net value turnover at P4.71 billion.

“Expectations of a tempered inflation last November and a BSP (Bangko Sentral ng Pilipinas) policy rate cut this December fueled positive sentiment,” he said.

For Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., investors remained cautious as they await “clearer macro signals,” and the latest inflation data scheduled for release this week.

But he noted the market’s mood got a slight lift after the Philippine Statistics Authority said that the year-on-year producer price index (PPI) for the manufacturing sector grew by a slower 0.3 percent in October.

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“The PPI came in better than expected, helping ease concerns over rising cost pressures,” Limlingan said.

International Container Terminal Services Inc. was the biggest gainer, climbing 3.2 percent to P565, thanks to the launch of its new logistics and industrial center in Brazil.

Alliance Global Group Inc., meanwhile, was the main laggard, declining 3.9 percent to P6.90.

The market closed with 97 advancers, 95 decliners, and 59 remained unchanged.