Stocks rise as investors shrug off inflation fears

The local stock barometer resumed its upswing to breach the 6,900 level on Tuesday, buoyed by expectations that the US Federal Reserve won’t rush to taper its monetary stimulus.

The main-share Philippine Stock Exchange index (PSEi) added 35.61 points or 0.52 percent to close at 6,912.71, shrugging off the uptick in the country’s August inflation rate to 4.9 percent.

Expectations that the US Fed would remain dovish for a longer time boosted global markets especially as the latest US payrolls report showed disappointing results.

Locally, investors also looked forward to improved business activity with the shift from general to granular lockdowns in the country.

The local market was led higher by the services counter, which rose by 1.03 percent, while the holding firm and property counters both added less than 1 percent.

On the other hand, the financial, industrial and mining/oil counters all shed less than 1 percent.

Value turnover for the day amounted to P5.4 billion. There was about P108.85 million worth of net foreign buying, adding support to local equities.

There were 119 advancers that outnumbered 76 decliners, while 41 stocks were unchanged.

Investors picked up shares of Globe Telecom and conglomerate LTG, which both gained more than 3 percent.

Ayala Corp. racked up 2.65 percent, while Converge, GT Capital, SM Prime and URC all rose by over 1 percent.

One notable gainer outside the PSEi was newly-listed food giant Monde Nissin, which advanced by 5.74 percent and was the most actively traded company in the market.