Blue-chip index rebounds on easing inflation
The local bourse rebounded on Friday as investors cheered inflation easing to just below 2 percent in September, with traders now hyped about prospects of further reductions in interest rates.
By the closing bell, the benchmark Philippine Stock Exchange Index climbed by 1.07 percent, or 79 points, to 7,467.92.
Likewise, the broader All Shares Index added 1.48 percent, or 58.99 points, to 4,041.65.
A total of 792.47 million shares worth P6.14 billion changed hands as foreigners made net purchases worth P607.93 million, stock exchange data showed.
This came after the Philippine Statistics Authority reported that headline inflation in September cooled to 1.9 percent, its lowest rate in more than four years, from 3.3 percent in August on the slower rise in the cost of food, transportation, housing and utilities.
Below target
Japhet Tantiangco, research head at Philstocks Financial Inc., said this “strengthened the case for the BSP (Bangko Sentral ng Pilipinas) to continue with their monetary policy easing.”
The central bank typically loosens its policy stance when inflation eases to within its target range, set at 2 percent to 3 percent.
Real estate firms and banks are set to benefit the most from the anticipated rate cuts, as these mean lower borrowing costs for consumers who may want to buy property, thus increasing demand for loans.
BSP Governor Eli Remolona has hinted at two more rate cuts this year totaling 50 basis points, from 6.25 percent currently.
BDO Unibank Inc. was the most actively traded stock as it rose by 0.7 percent to P158 each.
It was followed by Ayala Land Inc., down 1.6 percent to P37 each; Ayala Corp., up 2.66 percent to P715; International Container Terminal Services Inc., up 1.94 percent to P420; and Bank of the Philippine Islands, up 4.02 percent to P144.80.
Other actively traded stocks were SM Investments Corp., up 1.22 percent to P995; Monde Nissin Corp., up 6.51 percent to P10.80; PLDT Inc., up 1.30 percent to P1,560; China Banking Corp., up 0.08 percent to P59; and JG Summit Holdings, up 1.1 percent to P27.50 per share.
Gainers edged out losers, 107 to 87, while 52 companies closed unchanged, stock exchange data showed.
