PSEi barely changed ahead of GDP data

The local bourse was nearly flat on Tuesday despite July inflation nearing a six-year low as investors stayed cautious ahead of the release of economic growth data on Thursday.

By the closing bell, the benchmark Philippine Stock Exchange Index (PSEi) had added 0.08 percent or 4.98 points to end at 6,353.63.

Also, the broader All Shares Index rose by 0.12 percent or 4.34 points to close at 3,770.94.

A total of 1.27 billion shares worth P5.64 billion changed hands, stock exchange data showed.

Japhet Tantiangco, research head at Philstocks Financial Inc., said the bourse mostly moved sideways within the day before settling in the green territory as inflation eased last month.

Lower utility costs and food prices allowed inflation in July to cool to 0.9 percent from 1.4 percent in June, data from the Philippine Statistics Authority show. This is the lowest inflation print since October 2019.

Still, Tantiangco said investors were anxious in anticipation of the gross domestic product (GDP) print.

Only banks ended in the red territory due to a 2.74-percent slide in Philippine National Bank (PNB) to P60.25 per share. This was after investors digested its latest disclosure on long-delayed property dividends. Metropolitan Bank and Trust Co. also slipped by 2.15 percent to P72.90 each.

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The net interest margins of banks are typically affected when interest rates are slashed, since they would essentially see lower interest income.

With inflation easing, Tantiangco said this gave more room for the Bangko Sentral ng Pilipinas to cut rates, thus impacting banks.

DigiPlus Interactive Corp. was the top-traded stock as it gained by 2.51 percent to P24.50 per share. It was followed by International Container Terminal Services Inc., up 1.1 percent to P460; PNB; Ayala Land Inc., up 1.13 percent to P26.90; and BDO Unibank Inc., up 0.7 percent to P144 each.