PSEi firms up on easing inflation
Philippine stocks extended their gains on Friday as investors welcomed a slight easing in inflation, although thin trading and lingering concerns over interest rates kept sentiment cautious.
The benchmark Philippine Stock Exchange Index (PSEi) gained 0.35 percent, or 21.18 points, to close at 6,090.60.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said Friday’s advance marked the PSEi’s second straight session in positive territory and its third gain in four trading days.
The index also climbed to one of its highest levels since Aug. 26, after recently falling to two-month lows.
Headline inflation eased to 6.1 percent in August from 6.2 percent in the previous month, encouraging some buying activity, according to Luis Limlingan, head of sales at Regina Capital Development Corp.
Still, Limlingan said investors remained cautious as they assessed the policy direction of the Bangko Sentral ng Pilipinas (BSP) amid continued weakness in the peso.
Ron Acoba, chief investment strategist at Trading Edge, said selective bargain hunting among index heavyweights helped lift the market, while mining stocks led the broader rebound.
Trading activity also remained subdued, with net value turnover reaching just P3.47 billion. This was well below the three-month daily average of P5.99 billion, according to Acoba.
“The easing of headline inflation to 6.1 percent from 6.2 percent generated little investor enthusiasm, as inflation remains well above the BSP’s 2 to 4-percent target range, keeping the risk of further monetary tightening elevated,” Acoba said.
Acoba added persistently high global bond yields continued to weigh on sentiment.
******
Get real-time news updates: inqnews.net/inqviber
