Softer inflation spurs another rally from optimistic market
The benchmark Philippine Stock Exchange Index (PSEi) saw a strong finish on Friday after January inflation eased, lifting sentiments as attention returned to the reopening of the economy.
By the closing bell, the PSEi gained 1 percent, or 73.58 points, to 7,456.35, while the broader all-shares index added 0.71 percent, or 27.74 points, to 3,933.94.
Inflation eased to 3 percent in January from the previous month’s 3.2 percent as prices of basic goods and services grew at a slower pace.
The lower reading gives the Bangko Sentral ng Pilipinas “ample scope to keep a patient hand on its various policy levers, while keeping an eye on potential risks to inflation and the financial system,” it said in a statement.
Local stocks were mostly higher despite a selloff in Wall Street overnight.
Among PSE subsectors, mining and oil rallied the most at 1.99 percent, followed by holding firms, up 1.65 percent, property, up 1.63 percent and industrial, up 0.58 percent.
Financials and services also dropped 0.25 percent and 0.10 percent, respectively.
The PSE also announced the results of the latest PSEi rebalancing: Emperador Inc. and Monde Nission would be included effective Feb. 14. The two replaced Robinsons Retail Holdings Inc. and Bloomberry Resorts Corp.
A total of 1.75 billion shares valued at P8.64 billion changed hands on Friday. Foreign selling outpaced buying by a net amount of P25.76 million.
Overall, there were 110 winners versus 80 losers, while 54 companies closed unchanged, PSE data showed.
Solar Philippines Nueva Ecija Corp. was the most actively traded on Friday as it fell 6.79 percent to P2.06 per share.
It was followed by Converge ICT Solutions Inc., down 5.41 percent to P28; Bank of the Philippine Islands, up 0.25 percent to P100; International Container Terminal Services Inc., down 0.49 percent to P202; and PLDT Inc., up 0.53 percent to P1,880 per share.
