The benchmark Philippine Stock Exchange Index (PSEi) reclaimed the 7,200 level on Thursday as investors weighed the recent inflation data and recovery prospects through 2022.
By the closing bell, the PSEi rose 1.23 percent, or 87.62 points, to 7,234.92 while the broader all-shares index was up 0.97 percent, or 37.04 points, to 3,842.55.
After the Philippine Statistics Authority released data showing inflation eased to 4.2 percent in November, US investment banking giant Goldman Sachs noted the country’s consumer price index was returning to the government’s targets.
“[With] slow vaccination progress likely to weigh on activity through early next year, we expect the BSP (Bangko Sentral ng Pilipinas) to be patient in normalizing policy settings, keeping the policy rate on hold until late 2022,” the bank said.
Investors also cheered a separate announcement by the World Bank, which raised its growth forecast for the Philippines to 5.3 percent from 4.3 percent last September.
The news, however, was tempered by its 5.9 percent growth outlook for 2022—lower than the government’s forecast.
On Thursday, nearly all Philippine Stock Exchange (PSE) subsectors closed higher, save for property stocks, which shed 0.08 percent.
Financials led gainers with a 2.43-percent gain, followed by holding firms, up 1.27 percent, and industrial stocks, up 1.13 percent. Services also gained 1.07 percent while mining and oil added 0.17 percent.
A total of 1.86 billion shares valued at P8.61 billion changed hands while foreigners continued to exit the market, dumping a net amount of P1.09 billion by the end of the session.
PSE data also showed gainers outnumbering decliners, 108 to 90, while 45 companies closed unchanged.