PSEi regains 6,400 as inflation cools
The local bourse quickly reclaimed the 6,400 level just a day after slipping below it as investors cheered cooler April inflation. A slower growth of prices signaled better macroeconomic conditions for the country.
By the closing bell, the benchmark Philippine Stock Exchange Index (PSEi) climbed by 0.93 percent, or 59.06 points, to 6,418.69.
The broader All Shares Index likewise added 0.72 percent, or 26.86 points, to close at 3,746.12.
A total of 876 million shares worth P6.15 billion changed hands, stock exchange data showed.
Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said the index’s climb came after April inflation eased to 1.4 percent from 1.8 percent in March.
This was due to slower price increase in food and lower transport costs, according to the Philippine Statistics Authority.
Despite the good news, banks closed lower, with BDO Unibank Inc., Bank of the Philippine Islands (BPI) and Metropolitan Bank and Trust Co. (Metrobank) all declining.
Services firms, meanwhile, staged a steep comeback as index heavyweight and top-traded stock International Container Terminal Services Inc. (ICTSI) rallied by 6.11 percent to P375 each.
The port operator led by billionaire Enrique Razon Jr. posted its highest quarter earnings to date in the first three months of the year at $239.54 million, up by 14 percent.
Bloomberry Resorts Corp., also led by Razon, also surged by 9.97 percent to P4.19 per share.
Other actively traded stocks were BDO, down 0.57 percent to P157.50; Ayala Land Inc., down 0.61 percent to P24.30; and Universal Robina Corp., up 0.64 percent to P86.20.
