Local stocks move sideways in thin trade

MANILA, Philippines—Local share prices were flat at the start of the week as investors stayed on the sidelines to await results of the Bangko Sentral ng Pilipinas’ policy meeting this Thursday.

Also weighing on investors’ minds is the announcement of the latest inflation figures, which many feel may have gone up substantially following recent increases in the price of fuel.

The benchmark Philippine Stock Exchange index (PSEi) gained 0.17 percent, or 7.25 points, to close at 4,326.76. The broader all-share index likewise jumped 0.61 percent, or 18.51 points, to finish at 3,076.15 points.

The rally was led by mining and oil shares, which rose 2.17 percent to 16,741.65.

However, the service sector sank 1.12 percent, or 17.73 points, to 1,568.29. Financial companies were also in the red, falling 0.03 percent to 955.65.

A total of 91 shares climbed as 42 issues retreated. Forty-four other stocks were unchanged.

Trading volume reached 3.81 billion shares worth P3.76 billion, lower than the 2.42 billion shares worth P4.27 billion on Friday.

The inflation rate for April and the results of the BSP’s Monetary Board meeting, both scheduled on May 5, were seen influencing the trend for stock trading, a local brokerage said.

The effect on consumer confidence “and the sustainability of earnings growth” for cyclical sectors such as banks, properties and inflation-related food companies rely on these factors, the company said.—Paolo G. Montecillo

Read more...