PSEi extends winning streak on easing inflation

Local stocks extended their winning streak to a fifth straight session on Tuesday as investors welcomed slower inflation in June and snapped up shares of index heavyweight International Container Terminal Services Inc. (ICTSI), although trading remained subdued.

The benchmark Philippine Stock Exchange Index (PSEi) climbed 0.37 percent, or 23.12 points, to close at 6,247.11.

Philstocks Financial Inc. research manager Japhet Tantiangco said the market drew support from ICTSI’s rebound, while sentiment also improved after the country’s inflation rate eased to 6.4 percent in June from 6.8 percent in May, reinforcing hopes that price pressures are beginning to moderate.

Luis Limlingan, head of sales at Regina Capital Development Corp., said the local bourse extended its uptrend as inflation data came in better than expected, fanning optimism on the inflation outlook.

“The softer print, which also eased from the previous month, fueled buying pressure. Overall sentiment remained constructive as investors positioned for a possible more accommodative policy environment,” Limlingan said.

Despite the advance, investor participation stayed muted.

Net value turnover reached only P5.33 billion, indicating that many market participants remained on the sidelines as they continued to assess the economic outlook, Philstocks said.

Foreign investors, however, provided support, ending the session as net buyers with P770.42 million in net inflows.

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Sectoral performance was mixed. The services index led the gainers after rising 2.76 percent, while conglomerates posted the biggest decline, falling 1.28 percent.

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