Hopes of slower inflation puts PSEi on a hot streak

Expectations that inflation softened last month fueled investor optimism on Tuesday, thus extending the local bourse’s winning streak and bringing it near the 6,100 level.

By the closing bell, the benchmark Philippine Stock Exchange Index (PSEi) added 0.45 percent or 26.92 points to 6,064.11.

Likewise, the broader All Shares Index gained 0.24 percent, or 8.84 points, to close at 3,628.96.

A total of 907.59 million shares worth P7.09 billion changed hands, stock exchange data showed. However, foreigners opted to shed their shares, with foreign outflows totaling P266.33 million.

This comes ahead of the release of the February inflation rate, which economists pegged to have slowed to an average of 2.6 percent from 2.9 percent in January.

According to the analysts, lower prices of rice and fuel may have softened inflation last month. The Philippine Statistics Authority will release the figure on Wednesday.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said traders “seized bargain-hunting opportunities” ahead of the consumer price index release.

Ayala-led Bank of the Philippine Islands was the top-traded stock as it closed flat at P127 each.

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Following were BDO Unibank Inc., up 3.07 percent to P151; International Container Terminal Services Inc., unchanged at P340; Ayala Land Inc., up 1.15 percent to P21.90; and SM Investments Corp., also flat at P808.

Other actively traded stocks were JG Summit Holdings Inc., down 0.12 percent to P16.30; DigiPlus Interactive Corp., up 2.98 percent to P34.60; AREIT Inc., down 1.39 percent to P38.95; Universal Robina Corp., up 2.72 percent to P68; and Jollibee Foods Corp., down 2.33 percent to P252 each.

Gainers outnumbered losers, 107 to 84, while 49 companies closed unchanged, stock exchange data also showed.