PSEi climbs back to 7,000, posts 1.67% gain

Shrugging off the spike in the country’s January inflation rate, the local stock barometer climbed back to the 7,000 level on Friday in line with mostly firmer regional markets.

The main-share Philippine Stock Exchange index (PSEi) racked up 115.43 points or 1.67 percent to close at 7,019.18.

For the week, the PSEi recouped a total of 406.56 points or 6.15 percent.

“Investors brushed aside the latest CPI (consumer price index) print and continued with the bargain-hunting following overseas markets. Regional equities was able to extend their 3-day rally on Thursday, boosted by good corporate earnings and positive economic data,” said Luis Gerardo Limlingan, managing director at local stock brokerage Regina Capital Development.

For the first time since the rice crisis of 2018, the country’s inflation rate breached the upper end of the Bangko Sentral ng Pilipinas’ target range of 2-4 percent. The country’s January inflation came in at 4.2 percent on higher food and transport costs.

A string of destructive typhoons in late 2020 caused supply disruptions that pushed vegetable and fruit prices higher while the spread of African swine fever triggered a sharp run up in pork and other meat products with supply greatly affected by the disease, said ING Philippines economist Nicholas Mapa.

“We expect inflation to remain elevated in the coming months with base effects and persistent cost side pressures to force the headline close to or above the 4 percent level,” he said.

All counters ended higher, led by the property counter, which added 2.34 percent.

The financial, industrial, holding firm and mining/oil counters all added over 1 percent, while the services rose by less than 1 percent.

Value turnover for the day amounted to P9.2 billion. There was a modest net foreign selling worth P51.5 million.

There were 123 advancers that edged out 76 decliners, while 56 stocks were unchanged.

Investors picked up shares of Ayala Corp., which rose by 3.09 percent, while SM Prime added close to percent.

Ayala Land, BDO and Jollibee all added over 2 percent, while BPI, URC and Metrobank all gained over 1 percent. SM Investments added 0.58 percent.

Outside the PSEi, notable gainers included Millennium Global, which surged by 12.5 percent.

AbaCore and Vulcan Mining added 6.78 percent and 5.76 percent, respectively.

The day’s most actively traded company was Dito CME, which rose by 4 percent.

On the other hand, Apollo Global declined by 2.78 percent, while Converge and Basic Energy both shed less than 1 percent.