PSEi jumps amid hopes of more rate cuts

Philippine shares advanced sharply on Tuesday following the release of December inflation data. Hopes for continued policy easing boosted investor sentiment.

The Philippine Stock Exchange Index (PSEi) climbed 2.49 percent or 153.38 points to finish at 6,317.91.

The broader All Shares Index also added 0.97 percent or 34.61 points to 3,588.35.

All the major sectors recorded gains by the end of the session. Services logged the highest win at 4.02 percent.

Trading was also “strong” as net value turnover hit P7.37 billion, according to Japhet Tantiangco, financial research manager at Philstocks.

“The local market rallied further as investors continued to hunt for bargains with optimism fueled by the Philippines’ December inflation print, which remained under control,” Tantiangco said.

The country’s inflation print last month quickened to 1.8 percent, higher than November’s 1.5 percent. The figure fell within the Bangko Sentral ng Pilipinas’ (BSP) 1.2–2 percent forecast range for the period.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., noted strengthened investor confidence as “BSP Governor signals that another rate cut remains possible in February should economic growth fall short of expectations.”

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Jollibee Foods Corp. was the top index gainer, increasing 14.5 percent to P210 per share. The group bared its plan to list its international business on a US stock exchange.

ACEN Corp. was the main laggard, dropping 3.91 percent to P2.95.

Winners squashed losers anew at 141 to 72, with 50 names unchanged.