PH stocks rise on favorable inflation report
The local stock barometer firmed up on Tuesday as investors welcomed the lower-than-expected inflation print in September.
The main-share Philippine Stock Exchange index (PSEi) added 20.35 points or 0.29 percent to close at 6,981.24, driven by selective buying of large-cap companies.
“Philippine shares were bought up toward closing as the September inflation came in much better than most had anticipated,” said Luis Gerardo Limlingan, managing director at local stock brokerage, Regina Capital Development.
The country’s year-on-year September inflation rate came in at 4.8 percent, slower than analysts’ median estimate of 5.1 percent. The rate eased from 4.9 percent in August.
“Meanwhile, those same inflation fears weighed on the US market. Technology and tech-related stocks also received some pressure. The sentiment stems from the failed talks about infrastructure and social spending. Now, negotiations on the debt ceiling are heating up in Washington,” Limlingan said.
At the local market, domestic hands kept the index steady, while foreign investors recorded a net selling position of P709.33 million.
The gains were led by the services counter, which added 1 percent. The industrial, holding firm and mining/oil counters all rose by less than 1 percent.
The financial and property counters, on the other hand, both shed less than 1 percent.
Value turnover amounted to about P6.6 billion.
Despite the PSEi’s slight gain, market breadth was negative. There were more decliners than advancers 106 to 84, while 58 companies were unchanged.
Investors picked up shares of Converge and RRHI, which both jumped by over 5 percent.
Globe Telecom added 3.8 percent, while AEV rose by 2.35 percent.
AC Energy firmed up by 0.34 percent.
Notable gainers outside the PSEi included Manila Water, which rose by 3.54 percent, while MREIT and DMCI both advanced by over 1 percent.
On the other hand, Aboitiz Power fell by 4.09 percent, while Ayala Land, PLDT, ICTSI, BDO, Ayala Corp. and URC all shed less than 1 percent.
Notable decliners included GMA Network, which fell by 2.62 percent.
Monde Nissin, the day’s most actively traded company, fell by 1.36 percent. INQ
